Kolkata, Oct 14 (PTI) Job loss of about 600 people,including blue collar workers and white collar employees, arefeared owing to possible liquidation of cable manufacturerNicco Corporation after the lenders rejected the revivalpackage.
"It is sad to see that such an old company is facingpossible liquidation. There is job loss fear of around 600people at the two factories at Shyamnagar in West Bengal andBaripada in Odhisa", non-executive Director of NiccoCorporation Shiv Siddhant Kaul told PTI.
The Nicco Corporation, the first company to be referredto the National Company Law Tribunal (NCLT) after the BIFR wasscrapped, had earlier disposed off its other two units, theprojects and biotech divisions.
Kaul said that the stipulated 270 days under the NCLThad completed and the judge in its last hearing yesterday hadreserved its judgement.
He said under the new revival package, the promotersasked for some concessions on interest and to retain someportion of the proceeds of sale of excess office space to fundthe start of operations at two plants.
Temporary suspension of work had been declared at boththe plants since 2015 for lack of working capital.
"We did not ask for any fresh fund infusion from thelenders or any discount on the principal amount", he said.
Nicco's borrowed funds from the SBI, the UCO bank, theAllahabad bank and the Central bank, and secured lendersamounted to around Rs 213 crore besides, the interest thereon.
Kaul said that job loss could still be averted if somenew entities showed interest in the assets of the companywhich could be sold on lump sum basis.
"I think it is still possible to find a solution underthe law and to commence production", he said. PTI dc PRPR.
This is unedited, unformatted feed from the Press Trust of India wire.