 Mumbai:
The Board of Industrial and Financial Reconstruction
(BIFR) and the lenders of Hindustan Antibiotics (HAL) have
rejected the proposal mooted by Industrial Development Bank
of India (IDBI) to sell the public sector drug firm for
a consideration of Rs 5 crore.
BIFR has directed
the operating agency IDBI to formulate a viable package
for HAL and the institution has already initiated fresh
talks with the HAL management to revive the operations
of the company.
Following the open
bid invited in June 2002 by IDBI, the Mumbai-based KP
Sales Group had evinced interest to acquire HAL. As per
the agreement reached between IDBI and KP Sales, the current
outstanding liabilities would be settled by the new promoter,
disposing of the surplus land of 350 acres.
“This package
was not acceptable to BIFR and lenders like State Bank
of India. We have been asked to rework a fresh package
for HAL,” says a senior IDBI official. However, she
was reluctant to divulge more details on the subject.
The
lenders also pointed out that KP Sales has no expertise
to run a pharma company like HAL and the take-over price
quoted by the company was too small even to consider its
bid proposal.
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