Mumbai, Feb 12: ICICI, the debenture trustee for DSJ Finance's debenture offering, has asked the beleaguered finance firm to securitise some more of its property. In response to this diktat, DSJ Finance plans to securitise its land at Karjat, on the outskirts of Mumbai, to the debenture holders. The land, used for teak plantation, is valued at Rs 3 crore.ICICI, in its capacity as the debenture trustee, is also in the process of getting the lease holdings of DSJ Finance independently valued by auditors. ICICI has asked DSJ Finance to maintain additional land in Bangalore as security for the debenture holders. DSJ Finance has securitised land worth Rs 5 crore in Bangalore to ICICI.DSJ is also seeking RBI's permission to sell off or securitise the land owned by the company. This follows the RBI directive prohibiting DSJ from selling any of its assets after the company was defaulted on its fixed deposits.
DSJ had earlier kept some land in Bangalore with ICICI at time of the debenture issue.
DSJ had wriitento all its debenture holders saying that because of an acute liquidity crunch it could not redeem the debentures issued in the `B' series.
The debenture offer aggregated Rs 6.32 crore and Rs 54 lakh was due for redemption on October 30, 1997, and December 29, 1997, respectively.
Being a trustee of the debenture holders, ICICI has to maintain a one-time security of 1.25 times the funds collected from the debentures.
DSJ had convened a meeting with its debenture holders on October 28, 1997, seeking an extension for repayment of the debentures. The debenture holders refused to comply and, hence, the proposal was put forth to liquidate the company's assets. The company is also planning to send a letter to all its debenture holders, giving them details of realisable assets and the time involved in liquidating the assets. DSJ had earlier called a meeting of the debenture holders to seek their permission to defer the payment of interest and the principal amount as they were facing a cash crunch.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
