New Delhi, Oct 16: The Appellate Authority for Industrial and Financial Reconstruction (AAIFR) directed Tata Advanced Materials Ltd (TAML) to immediately convert the Rs 15.80 crore worth of inter-corporate bonds (ICDs) to equity, and declared the company was no longer sick.The ICDs are to be converted into 15,800,00 equity shares of the face value of Rs 10 each, the AAIFR said in a recent order.
TAML will issue the shares dated September 20, 2000, to the holders of the ICDs.
The authority also waived the interest dues of Rs 1.45 crore accrued on the ICDs up to March 31, 2000.
``No interest on ICDs will be charged by the holders of ICDs for the period April 1, 2000 to September 20, 2000,'' the order said.
With the approval of the scheme, the company's net worth exceeded its accumulated losses and the company has moved out of the provisions of the Sick Industrial Companies' Act (Sica).
The company's operating agency IDBI had, at the hearing, stated that TAML's accumulated losses as on March 31, 2000, stood at Rs 21.87 crore and the net worth was negative by Rs 14.33 crore. However, TAML chief operating officer Hemanth Achaya said the company had recorded operating profit on June 30, 2000.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.