Jindal Strips Ltd (JSL) has set March 30 as the deadline for selling its US-based 61 per cent subsidiary, Massillon Stainless.
Sources close to the development said that Jindals have agreed to put the plant on hot idle, that is, maintaining the minimum heat and electricity to preserve the equipment, but only until March 30.
After that date, they will shut down the utilities and proceed with liquidation of the plant. The unit served as an independent converter of hot band stainless coils to cold rolled stainless sheet.
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Mike Locker of Locker Associates, a New York-based firm, has been hired to find a buyer for the plant. Locker is reportedly negotiating with a buyer but is unlikely to meet the deadline.
Initially, there were around 15 interested parties but most of them backed out. The New York firm is expected to request JSL to extend the deadline on behalf of the party by a couple of weeks so that it could do a due diligence of the plant.
Sources said around 92 employess were out of work when the plant closed late last year. The future of the plant now hinges on the Jindals bearing the burden of extending the deadline.