Cash-strapped Southern Petrochemicals Industries Corporation (Spic) plans to sell its phosphatic (including sulphuric acid, phosphoric acid, DAP, NPK, single super phosphate and aluminium fluoride) business situated at Tuticorin, together with the business undertaking, for a consideration of not less than R300 crore to bring down its liabilities of R3,000 crore.
Interestingly, the plant was revived only in October last year after three years of closure owing of huge debt and lack of working capital, among other issues.
Asset Reconstruction Company of India (ARCIL) (debt aggregator) has decided to sell the Tuticorin plant business also to raise funds to bring down the overall liability. ACRIL took over the entire debt portion of Spic a few years ago and has been involved in selling several Spic properties, including real estate properties in TN, Mumbai and other places, non-core businesses and its stake in JVs including Spic Jordan.
Sidd Lifesciences, promoted by Spic chairman AC Muthiah?s son Ashwin Muthiah, is learnt to have been involved in the deal, thereby ensuring that the core business ? Tuticorin fertiliser plant ? does not slip out of promoters? hand and at the same time ARCIL could raise funds to retire the huge debt. Sidd Lifesciences had also bought out majority shares of one of the group company Manali Petrochemicals recently to partly retire the debt owned by Spic.
According to sources, Spic also decided to sell its pharma business in Cuddalore, but met with a huge protest from workers and the proposal is still pending with ARCIL. ARCIL is also said to have cleared one-third of the debt portion by selling assets of Spic over the last two years.