Operating agency ICICI has been asked to submit its final report, including minutes of the final meeting and a draft rehabilitation scheme (DRS) in case a consensus proposal has been drafted, to BIFR by August 20 this year.

The showcause notice for winding up GPAL shall remain operative during this period and the bench said it would decide on further course of action only after the operating agency's report has been received.

While allowing prospective parties some more time to discuss their respective proposals with ICICI, the bench directed that "the proposals should preferably be based on one-time settlement of secured dues".

It however did not permit the sick company to sell assets to expedite the rehabilitation process.

The operating agency has been asked by the BIFR to keep in view the fact that the DRS should be based onpurchase of assets and their fresh valuation for fixing the reserve price and constitution of the asset sale scheme.

The bench noted that as per the report received from the operating agency (OA), three companies have evinced interest in purchasing the sick company's assets after the showcause notice.

Asian Electronics Ltd (AEL), Illinois Corporation Investments Inc (ICII) and the Cronus group have evinced interest in Gujarat Poly-AVX.

The representative of the Cronus group said in his submission that continued technology tieup with AVX was necessary and his company needed 60 days for concluding negotiations. "As per the agreement between AVX and the present management of GPAL, the technology agreement between the existing promoters and US-based AVX will cease to exist once an outside party buys the shares of existing promoters," it said.

At an earlier hearing it had been noted that the installed capacity of the company was below the minimum economic size and the technical collaborator, AVX, hadruled out any further investment.

But in view of the several proposals the operating agency had received for the company's revival, the bench has awarded six weeks to the OA to draft a scheme.