Shree Synthetics draws up Rs 42.5cr revival plan

Shreekant Bangur's ailing Shree Synthetics Ltd, which has recently shifted its registered office from Ujjain in Madhya Pradesh to Calcutta, has drawn up a Rs 42.5-crore revival plan.Company sources said that the revival plan has already been submitted to the operating agency, Industrial Investment Bank of India. ``The scheme has followed all the guidelines laid down by the Reserve Bank of India and its cut off date is March 31, 2000. The banks and the financial institutions involved in the scheme are considering it positively,'' sources said.According to the plan, banks and financial institutions are making an interest sacrifice to the tune of Rs 22 crore and it would be followed by a capital restructuring of Rs 10 crore. A voluntary retirement scheme worth Rs 2.5 crore would be floated and the company is seeking a working capital loan of Rs 8 crore.
``Out of the rest Rs 20.5 crore, the promoter, Shreekant Bangur, will be bringing in Rs 11 crore and Rs 9.5 crore will be given by the banks and financial institutions as need-based working capital,'' company sources said.At present, the workforce of Shree Synthetics is 1,800. A top official of the company said the 250 have been identified for retrenchment through the voluntary retirement scheme.
Shree Synthetics, which manufactures nylon and polyester filament yarn, has its production unit at Naulakhi in Ujjain, Madhya Pradesh.
The company has also decided to change the accounting year from July-June to April-March. ``The current accounting period will be of nine months ending on March 31, 2000,'' sources said.The financial institutions involved in the revival scheme are Unit Trust of India, ICICI Ltd, General Insurance Co, Life Insurance Corp, Union Bank of India and Punjab National Bank among others.Sources said that the company officials will also approach the West Bengal Government for help.``We would approach the State Government and would request them to cooperate with us in reviving the company. We are confident that the state government will lend all sorts of help,'' sources said.