Job loss of about 600 people, including blue collar workers and white collar employees, are feared owing to possible liquidation of cable manufacturer Nicco Corporation after the lenders rejected the revival package.
Job loss of about 600 people, including blue collar workers and white collar employees, are feared owing to possible liquidation of cable manufacturer Nicco Corporation after the lenders rejected the revival package. “It is sad to see that such an old company is facing possible liquidation. There is job loss fear of around 600 people at the two factories at Shyamnagar in West Bengal and Baripada in Odhisa”, non-executive Director of Nicco Corporation Shiv Siddhant Kaul told PTI. The Nicco Corporation, the first company to be referred to the National Company Law Tribunal (NCLT) after the BIFR was scrapped, had earlier disposed off its other two units, the projects and biotech divisions. Kaul said that the stipulated 270 days under the NCLT had completed and the judge in its last hearing yesterday had reserved its judgement. He said under the new revival package, the promoters asked for some concessions on interest and to retain some portion of the proceeds of sale of excess office space to fund the start of operations at two plants.
Temporary suspension of work had been declared at both the plants since 2015 for lack of working capital. “We did not ask for any fresh fund infusion from the lenders or any discount on the principal amount”, he said. Nicco’s borrowed funds from the SBI, the UCO bank, the Allahabad bank and the Central bank, and secured lenders amounted to around Rs 213 crore besides, the interest thereon.Kaul said that job loss could still be averted if some new entities showed interest in the assets of the company which could be sold on lump sum basis. “I think it is still possible to find a solution under the law and to commence production”, he said.