In a release, the ailing company's management has squarely blamed its two bankers for the delay. The release said that it was not tenable for SBI and Syndicate Bank to backtrack. "The senior counsel for Metal Box argued that now for SBI and Syndicate Bank to go back on the 16.1.99 position was not tenable."

When contacted by The Financial Express, Metal Box executive AK Agarwala said that, barring the dispute over the settlement amount to be providesdby the promoter, all other issues had been settled with the bankers. However, according to Agarwala, both SBI and Syndicate Bank had, at another joint meeting, noted that they were withholding their approval.

The Metal Box management said the points put forth by the bankers and financial institutions at the joint meeting on January 15 this year have been incorporated in the updated Rs 114 crore scheme.

It noted that subsequent to the meeting, promoter's contribution had been increased to Rs 34 crore from Rs 30 crore as desired. It said that this had been done to accommodate the increase in settlement amount to banks and FIs by another Rs 6 crore to Rs 49 crore instead of Rs 43 crore earmarked earlier.

The bankers, at joint meetings with the management, had tagged six conditions for approving the revival plan. Apart from the list of properties, these included:

* The promoter's contribution as laid down in the scheme approved by the Board for Industrial & Financial Reconstruction (BIFR) should be maintained at Rs 30 crore and anything over and above this amount will be used for enhancing the settlement amount to the banks and FIs;

* The banks and FIs prefer to have their dues settled within six months from the date of sanction of the scheme;

* The banks and FIs shall have the right of recompense in case realisation from the sale of assets is more.

Sources pointed out that the insistence of bankers for having a look at the list of its properties and assets stems from the fact that the management had been unable to provide its auditors with details regarding the sale of certain assets amounting to Rs 1.74 crore.

Banking sources had repeatedly pointed out that until and unless a list of assets are provided and the promoter agrees to co-operate on the issues raised by them at several joint meetings, approval is unlikely to come through.

SBI had also pointed out that the price of the Worli property must have gone up with a change in the user status. Proceeds from the sale of the Worli property is the main source of funding the revival plan.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.