JK Synthetics, the flagship of the Kanpur-based JK group, is set to dispose of its Kota and Jhalawar plants to an unnamed buyer.
It is also close to a one-time settlement deal on dues with financial institutions and banks.
These moves could mean the company could well be on the normalcy trail, after a troubled past of warring family factions, closed plants and mounting debt.
An MoU has been signed between this buyer, whose name has not been revealed, under which the claims of the staff association and workers unions will be settled.
According to the annual report of the company for 2001-02, most issues between the two have been resolved.
Once this happens, the company will enter into a tripartite agreement and on that basis a scheme for the restarting of the two plants will be finalised.
Sources said the deal with this buyer has been finalised and the company is likely to get upwards of Rs 50 crore of the Kota and Jhalawar complexes.
All the liabilities will be with the buyer except the loans from financial institutions and banks, which will remain with the company.
JK Synthetics, after the disposals, will become just a cement company. The company has paid institutions and banks Rs 26.74 crore till March end, as an agent for running of the grey and white cement plants.
The Kota and Jhalawar complexes, in the partition scheme of the Singhania family here, had gone to Govind Hari and Ramapati-Nidhipati combine, the two nephews of Gaur Hari and Govind Hari.
The latter seem to have abandoned the company. Ramapati did not attend any board meeting held in the last fiscal.
And none of the plants which were being looked after by Govind Hari, the younger brother of Gaur Hari, will remain.
On the other hand, all the three plants producing grey and white cement are running and doing well and now constitute, what was once a well-diversified and vibrant company.
The company has also improved its performance. A new cement plant at Mangrol with an installed capacity of 7.50 lakh tonne per annum was commissioned in December 2001.
JK Synthetics
