Kerala - Kochi   

Stay on closure of Trayons extended

KOCHI: The High Court has extended the stay order on the winding up of Travancore Rayons Ltd. (Trayons), Perumbavoor, until further orders.

The court took the decision in a case filed by the Board for Industrial and Financial Reconstruction (BIFR) after considering the steps taken by the government to revive the unit.

The court had given the nod to a request by the BIFR for winding up the company in December 2008 and later, stayed the order till June 30, 2009, on an appeal filed by the government, which has over 35 per cent equity stake in the company.

The stay was granted in order to facilitate the process of finding new promoters for the unit. Accordingly, a global expression of interest was floated to which five groups responded. The Dubai-based Midland group was selected after assessment of their asset base and capabilities. The proposal for entrusting the company to the promoter was submitted to the court on June 30.

The government can now go ahead with further procedures for revival of the unit. The Midland group, Travancore Rayons Ltd and the government will jointly chalk out the measures.

A one-time settlement of dues of Rs.200 crore will be on priority.

Talks had been held earlier with the banks and financial institutions in this connection and the government is hopeful of arriving at an agreement.

Retaining over 1,000 workers of the company and payment of the dues of those who had retired are among other issues to be sorted out. The government is expected to waive arrears incurred by the company in electricity charges and taxes.

A meeting of the stakeholders will be convened by the government to discuss the issues and chalk out future measures, sources associated with the revival process said.

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