Haldia Petro readies for debt rejig

By Our Staff Reporter

KOLKATA, SEPT. 28. The directors of Haldia Petrochemicals, at a marathon board meeting, have agreed to carry out a debt restructuring programme. The board will take 30-60 days more to decide on the formula. The restructuring is expected to be done in the next few months. The board will also find a `suitable' chairman for the company as Mr. Tapan Mitra resigned from his office today.

Addressing media persons after the board meeting, Mr. Purnendu Chatterjee, chairman of the Chatterjee group, the main private promoter in the project, said all the promoters have agreed that the present debt:equity ratio of 4:1 was unbearable for the company and refinance of high cost debt through equity was imminent. However, they were yet to arrive at a consensus on how far the ratio would be brought down.

``A project of such a type should decide on a flexible capital structure balancing the need for fresh fund injection and cost of funds'', he said adding the project proposal, originally approved by IDBI, pegged the debt-equity ratio at 1.6:1.

On the possibility of including IOC as a fourth partner in the project, Mr. Chatterjee said it was an alternative to debt restructuring programme agreed upon by the present promoters. ``IOC is a very attractive partner to work with. However, their proposal is too difficult to accept for HPL. They are welcome, if we all can come at a meeting ground''. IOC, it may be recalled, had particularly stressed on pegging the project cost at Rs. 4,800 crores and acquiring 26 per cent stake in HPL.

According to company sources, while none of the promoters did agree to reduce the project cost, the TCG group strongly opposed giving IOC 26 per cent stake in the company as it would dilute their (TCG's) operational control over the company.

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Section  : Business
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