In recent months, the group has repaid only Rs 2.64 crore due from Modern Insulators which has finally climbed back into the black posting a net profit of Rs 9.3 lakh in the 1998-99 fiscal.

In reply to a questionnaire from The Financial Express, the Modern group confirmed that total outstandings were at Rs 977 crore, and that only Modern Insulators had made part-repayment.

The other group companies continued to make heavy losses, with total losses posted by the remaining four companies -- Modern Syntex, Modern Thread, Modern Terry Towels and Modern Denim -- for the last fiscal standing at Rs 172.49 crore on an aggregate group turnover of Rs 926 crore.

Total interest charges paid by the group crossed Rs 149 crore working to a significant 15.7 per cent of the group's total income in 1998-99.

The net lossposted by Modern Denim, however, was substantially less at Rs 13.89 crore against Rs 38.56 crore in the previous fiscal. But this was primarily due to turnover dipping from Rs 96 crore to Rs 25 crore.

The FIs had given an in-principle approval to the proposal of Modern group seeking concessions in repayment of loans and redemption of non-convertible debentures and preference shares in April last year.

However, the FIs had stipulated certain conditions which included fresh infusion of funds to the tune of Rs 50 crore by the promoters by selling off Modern Denim. However, six months have passed since the deadline and the group is yet to find a buyer for Modern Denim forcing them to consider sale of other industrial assets of the group.

As per the arrangement, the FIs have the authority to put on sale the assets of any group company to mobilise the net amount of Rs 50 crore, in case the deadline for selling Modern Denim was not met, but is yet to take any step towards this direction.

The FIs had earliergiven an in-principle approval to forego compounded interests and liquidated damages of various companies amounting to Rs 39.89 crore. The FIs also gave a nod to rescheduling of loan repayment by converting them into instruments like NCDs.

In Modern Syntex, the FIs agreed that the overdue interest and simple interest accruing up to cut-off date on almost all the loans and NCDs from banks and institutions be converted into 16 per cent optionally secured fully convertible debentures (OFCDs) redeemable in 32 quarterly instalments commencing from the quarter begining April 1, 2000.

It was further proposed that Modern Syntex's overdue interest and interest accruing up to the cut off date on FCL from BV Bank and BHF Bank be rescheduled at document rate and repayable in 16 half yearly instalments commencing from April 1, 2000.

In Modern Threads, the outstanding principal of all loans sanctioned in rupee currency (including overdue instalments) were to be converted into 17 per cent NCDs redeemable in 30quarterly instalments commencing from October 1 2001.

It was also proposed that, preference shares worth Rs 8.75 crore will be redeemed in four annual instalments from the year 2003-04 as against, from the year 1997-98 (Rs 3 crore) and 2001-02 to 2004-05 (Rs 5.75 crore).