Although the nitty-gritties of the restructuring are not available, sources told The Financial Express that it will contain a slew of measures to pay off the liabilities without the sale of the synthetic fibre division. The company is contemplating the sale of its steel division and commercial properties as an alternative turnaround route, sources said.

The need for a new restructuring report has been necessitated by the last-minute break-off with Polysindo due to differences over the price. JCT had agreed to sell off its synthetic-fibre division to Polysindo for a sum of Rs 413 crore but later demanded a revision in the sale price to Rs 500 crore on account of the increase in fibreprices. Polysindo rejected the demand by saying that the JCT's outdated plant and machinery would not merit such a higher price. Though KPMG Peatmarwick had been asked to value afresh the plant and machinery, both parties failed to arrive at a consensus.

JCT needs to come up with a new strategy to survive the heavy competition arising in the wake of the liberalised environment. Though the polyester- fibre market is showing signs of revival, long-term prospects of the industry is determined by the strategies of the market leader Reliance Industries, analysts said.