India Steamship Company Ltd, a K K Birla group company, plans to replace one of its three-ship fleet after the completion of its one time settlement with its lenders, Union government, State Bank of India and Indian Bank.
According to the managing director L M S Rajwar, the company is likely to register a profit during the current financial year. During 1999-2000, India Steamship Company registered a net loss of Rs 2.58 crore down from Rs 5.06 crore of the previous year.
"Once the company is through with the one time settlement with the lenders, we would be replacing one of the three ships by the end of this financial . However, it would not be possible for us to buy a new one," Rajwar told Business Standard after the company's 72nd annual general meeting.
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In the one time settlement, India Steamship Company is surrendering nine prime real estate properties to the Union government, State Bank of India and Indian Bank to meet its debt.
Rajwar said that the total payment package is of Rs 74.92 crore, out which the real estates would amount to Rs 11.97 crore.
The immovable properties include the entire India Steamship House in the central business district of Calcutta, one floor of Octavius Centre, five flats on Judges Court Road, three units of Great Eastern Chambers of Mumbai and a flat in Goregaon in the metropolis' suburb -- were valued at Rs 11.97 crore by the lenders.
A special resolution pertaining to surrender of these properties was also passed at the Thursday annual general meeting.
Apart from these propitious the lenders would also receive net cash of Rs 45.62 crore, the first installment of which would be Rs 20.20 crore.
Rajwar said that balance sheet of the company would be bankable after the debt restructuring process is over.
"We are confident of registering some minor profit during the current financial year but it will not be enough to wipe out the accumulated losses," he added.