HMT receives sanction from BIFR for rehabilitation

New Delhi, Jun 23: On Monday, June 23, HMT Ltd said it has received sanction for the Rehabilitation Scheme of HMT Machine Tools Ltd, the wholly owned subsidiary of HMT Ltd from the Board for Industrial and Financial Reconstruction (BIFR). The board has granted sanction under Sections 19(3) and 18(4) of SICA, for immediate implementation.

The Rehabilitation Scheme is based on the Revival Plan of HMT Machine Tools Ltd approved by the government during March 2007 envisaging funds Infusion in the form of Equity and Preference Shares Conversion of Government loans into equity and waiver of interest on the said loans.

The Rehabilitation Scheme also envisages various concessions and reliefs from various stakeholders like banks, creditors, investors, statutory authorities apart from the merger of Praga Tools Ltd, Hyderabad, another subsidiary of HMT Ltd with this company which has been effective from April 01, 2007.

UNI