Cybele Industries JV with Vijay Shanti is on

Cybele Industries Ltd has announced that the Company filed an appeal before the AAIFR against the BIFR order dated June 07, 2007.

The BIFR in its order had declined to process or proceed with the draft rehabilitation scheme (DRS) submitted by the Company / OA.

The BIFR restrained Company from going ahead with the property development & directed refund of the advance received from the developer i.e. Vijay Shanti Builders and cancellation of agreement with them.

BIFR appointed IDBI, Chennai as OA in place of Catholic Syrian Bank (CSB) and directed the Chairman & CEO of CSB to explain as to why action should not be initiated against him and the officers concerned in terms of Section 33(1) read with Section 33(2) of the Act for not performing the duty of OA diligently.

The Company further informed that AAIFR after hearing the rival submissions vide its order dated December 14, 2007 received by Company on December 31, 2007 has stayed the above said BIFR order and have directed BIFR to circulate the DRS which envisages as under :

The Company's land admeasuring 10 Acre to be developed in collaboration with Vijay Shanti Builders in accordance with the MOU already entered with them. Under the MOU the developer to offer 40% of the cost of the built up area of 8 lac Sq Ft with in turn works out to Rs 83.25 Crores @ Rs 2600 per Sq Ft.

The business of M/s. Asia Cables Ltd a Partnership Firm be merged with the Company & partners shall be issued Equity Shares of the Company in terms of the Valuation done by Chartered Accountant & Chartered Engineer.

The CSB continue to be Operating Agency.

As the OA and Company has not committed any wrong while formulating the scheme, no action under section 33 of SICA is required to be taken.

Now, the BIFR shall be circulating the DRS and it shall be approved at the next hearing.

Source : Equity Bulls

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