IFCI Ltd is likely to settle its long tussle with the Industrial Development Bank of India (IDBI) over the payment of counter-guarantee to Murablack (India) Ltd.
Top IFCI executives said the financial institution would honour its commitment. "We have had some financial problems of late which has prevented us from paying our share of the counter guarantee," said an executive.
A guarantee of Rs 26.89 crore had been given to MIL for a loan taken from Swiss Bank Corporation, which was to be shared by IDBI, IFCI and ICICI Swiss Bank Corporation (SBC) to MIL in August 1991. While IDBI provided 50 per cent of the amount, ICICI and IFCI picked up the remaining proportionately.
Sources said that IDBI had issued the guarantee for the entire amount after obtaining the necessary confirmation from IFCI and ICICI for issuing counter guarantee to the extent of their respective shares. While ICICI has issued the counter guarantee IFCI is yet to do it.
MIL had taken a loan, to acquire a plant in Switzerland, which was guaranteed by the three institutions. MIL has since been referred to the BIFR and IDBI has been appointed as the operating agency.
Since April 1995 MIL started defaulting on the loan payment to SBC and as a result the liability devolved on the institutions. IDBI has paid Rs 8.25 crore under the guarantee obligation (due till December 1996) of which IFCI's share amounted to about Rs 2.1 crore. IDBI also remitted the balance Rs 20.55 core in December last year.
IDBI executives said that IFCI's share in the second disbursement amounted to Rs 5.15 crore. "IFCI then told us that it had opted out of the project and the matter should be treated as closed," said an IDBI executive.
IDBI had sought reimbursement of Rs 7.2 crore from IFCI in a time bound manner. In the meanwhile IDBI had threatened action if IFCI did not honour its commitment.
