LML seeks strategic ally

The Indian promoters of LML are looking for a strategic partner to revive the company. The top management have contacted parties and at least one of them is said to have visited the plant.

The holding of the Indian promoters in the firm has got reduced to 39.99 per cent, consequent to the issue of 24,47,486 equity shares of Rs 10 each to Merrill Lynch Capital Markets, Espana.SA.SV, at Rs 39.99 each, at a premium of Rs 29.99 a share.

This has brought down the equity of the promoters from 43.70 per cent. The holding of the other stakeholders has come down proportionately.

However, the present promoters remain the largest shareholder in the company. This has taken place because of the conversion of the 2250 FCCB series A, due for maturity in 2008 of $1000 each, for a total of $22,50,000.

This has brought down the equity of the promoters from 43.70 per cent. The holding of the other stakeholders has come down proportionately. However, the present promoters remain the largest shareholder in the company.

Management spokespersons say they are hopeful of getting a partner in a month or two. Meanwhile, through two notices pasted on the factory gate, the management has asked the workers to persevere and wait as the management is doing everything to bring the company to robust health.

The firm has offered an advance of Rs 1,200 per worker for January. Further, the notice urges workers not to fall prey to the machinations of "outside elements" responsible for the closure of large number of factories in the city.

The notice said the Employees State Insurance Corporation recovered Rs 1.16 crore on February 21.

R K Srivastava, director (administration & personnel), said 1,500 of the 3,200 workers had taken Rs 1,200 advance. It has further offered Rs 250 for the holy festival. In the discussions held between the management and the workers at the SP's office, where representatives of the labour department were present, no truce could be reached.