Indian Metals set to merge
with group co }
[ THURSDAY, DECEMBER 18, 2003 12:25:40 AM ]

MUMBAI: The Orissa-based Indian Metals and Ferro Alloys (IMFA) is set to merge with group company Indian Charge Chrome (ICCL). The company’s promoters have initiated action on the merger in terms of regulatory and other clearances, though no time frame has been set for the process, ICCL joint managing director Shubrakant Panda said.

The merger was one of the conditions set by term lending institution IDBI before clearing a corporate debt restructuring (CDR) package for ICCL.

The company owes IDBI about Rs 500 crore. The CDR envisages a reduction in ICCL interest rate from 17.5% to 10% per annum, and has allowed a 13-year payback period. IDBI plans to convert part of its debt of about Rs 45-50 crore into equity in the company.

Meanwhile, ICCL is also simultaneously planning to bring in a strategic investor to take a ‘reasonable’ stake in the company, Mr Panda told ET. The company is continuing talks with commodities trader Marubeni and some other players. The approval of the CDR package by the lenders makes the entry of a partner more likely, he added.

IMFA, located in the Rayagada district of Orissa, is a closely held company with the promoters and companies acting in concert holding 98.9%. The remaining stake is with the public, but the company is no longer listed on stock exchanges.