JK Synthetics, the troubled Gaur Hari Singhania group company, has put its Kota and Jhalwar plants, manufacturing synthetic fibre, on the block as part of its restructuring exercise.
The company has appointed a Boston-based consultant for scouting buyers for these two facilities. As part of its restructuring exercise, the company is also negotiating with foreign lenders to raise $100m through external commercial borrowing to repay its debt worth Rs 500 crore to domestic lenders.
According to sources, the company is believed to be negotiating with the Indonesia-based Lohia group for selling these facilities. The buzz is that the Singhanias could end up richer by around $50m if the deal goes through. When contacted by ET, AK Saraogi, senior vice president, JK Synthetics said, “We have so far not received any proposal from this group.” But he confirmed the company has appointed consultants for scouting buyers for these facilities. With the disposal of the two units that manufacture synthetic fibre and nylon tyre cord, JK Synthetics will be left with the cement units at Nimbahera, in Rajasthan. It is also believed that all inter-family claims have been settled leaving YP Singhania, Gaur Hari Singhania’s son, to run the unit independently.
JK Synthetics, which has been reeling under financial pressure with a debt burden of Rs 510 crore, had earlier submitted its restructuring scheme with the Appellate Authority for Financial & Industrial Reconstruction (AAIFR) for demerging of its 2.3 mt cement division into a separate company called JK cement. As per the scheme, the rest of the business, primarily synthetic fibres, was to be closed down.
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