The Board for Industrial & Financial Reconstruction (BIFR) has given the last chance to the Department of Heavy Industries (DHI), the administrative department for the ailing Cycle Corporation of India (CCI), for coming up with a revival plan for the company.
The ultimatum by the board comes in the wake of DHI pleading for one more opportunity for the government to revive the company. The public sector CCI has been before the BIFR for the last several years.
"Keeping in view the pressing request of DHI, the bench has decided to allow one last opportunity to the government of India to attempt revival of the company by exploring afresh the possibilities of change in the management," a two-member bench of BIFR said.
BIFR has directed Industrial Development Bank of India (IDBI), the operating agency (OA) in this case, to issue advertisement in leading newspapers within two weeks inviting offers for the takeover/leasing/amalgamation/merger for rehabilitation of the company.
The operating agency would inform the board, on the expiry of eight weeks, the details of the offers received in response to the advertisement and submit its considered recommendations in the matter.
In the event that no concrete rehabilitation proposal is received in response to the advertisements, the bench would proceed further with steps to wind up the company. However, the board would consider objections and suggestions received in this regard before arriving at any conclusion.
The next hearing is scheduled to be held on April 10, 2000. The bench would also consider objections and suggestions to the show cause notice issued on July 23, 1993. A show cause notice for winding up of the company was issued in July 23, 1993 by the board. eta name="description" content="Nearly 15,600 small non-banking finance companies are likely to miss the Reserve Bank of India deadline for registration before January 8, 2000.">
