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BPL, Videocon lock horns over Uptron

Videocon International Limited has entered into a battle royal with BPL Limited to have a share in the sick Uptron Picture Tubes Limited (now known as BPL Display Devices Limited).

VIL expressed willingness to contribute Rs 75 million to the sick company and sought to induct two of its directors on BDDL'S board.

BPL opposed VIL's bid on the ground that the latter had failed to contribute Rs 75 million immediately after the sanctioning of the rehabilitation scheme in April 1996 or within the time schedule.

Despite being aware of its obligations towards the sick company, VIL did not pump in the requisite funds fearing that the sick company can never be revived, BPL alleged at a review hearing of the Board for Industrial and Financial Reconstruction.

According to the sanctioned scheme, BPL and its associates were to contribute a sum of Rs 712.5 million within a time-bound schedule to meet part of the cost of the scheme.

BPL was recognised as the propounder of the scheme and the obligation to fulfil any shortfall in the funds to be infused had to be met by it, which it did.

The sanctioned scheme had envisaged that fresh equity would be raised in BDDL with BPL taking up 193.4 million shares at par, VIL taking up 0.75 million shares at par and Toshiba taking up 0.375 million shares at par.

UNI

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