Lenders may finally extend Rs 400 cr loan to Haldia Petro

Bankers to meet May 25 for the purpose, company starts searching for new MD

Lenders of Haldia Petrochemicals Ltd (HPL) have signaled that they are considering to  release Rs 400 crore to the ailing petrochem company after West Bengal Industrial Development Corporation (WBIDC) gave an in-principle approval to extend a term loan of Rs 100 crore to HPL.

After a brief board meeting, HPL chairman Partha Chatterjee said bankers have signaled extending Rs 400 crore more considering the corporate debt restructuring (CDR) package.

“In a speedy move, they are going to have a meeting on May 25 for releasing Rs 400 crore at the moment. They will take into consideration the CDR options and take a final call,” said Chatterjee.   

“But things are looking good as their response seems to be promising,” he added.

SBI, IDBI Bank and PNB are the lead bankers. To increase operational capacity of the plant, HPL needs immediate infusion of funds. Once the state government exits HPL, whoever comes and acquires the state’s stake will have to repay the Rs 100 crore loan to WBIDC. Then, WBIDC will give it back to the state government.

Meanwhile, in a surprise move, the government has decided not to extend the contract to the managing director of the company—Sumantra Choudhury. The MD's one year contract is due for renewal on June 18.

While everyone is mum on the reason for the proposed removal, search is on for a new managing director. “We will have a new MD,"added Chatterjee.

 An official of The Chatterjee Group (TCG), principal promoter of HPL,   said this move was totally unexpected and the reasons are still unclear behind the move.

According to officials close to the development, the decision for removal may have come from Chief Minister, Mamata Banerjee, who was not happy with HPL’s performance.