UIL to restart fire-hit EPDM plant in 8-10 weeks

26 October 2006 10:42  [Source: ICIS news]

NEW DELHI (ICIS news)--Unimers India Limited (UIL) said on Thursday that it expects to resume operations at its 10,000 tonnes/year synthetic rubber plant at Turbhe in Maharashtra State in 8-10 weeks following a fire.

 

The fire broke out in the finishing section and warehouse area of the plant in the early hours of 24 October and was brought under control in about five hours, resulting in injuries to six people.

 

UIL, which is India’s monopoly producer of ethylene propylene diene rubber (EPDM), explained that the section had suffered extensive damage and substantial loss of stocks, which combined is estimated at over Rs150m ($3.3m/€2.6m).

 

In other news, UIL said in its Q2 results that lenders had collectively cleared a new debt restructuring package (DRP), which provided for a reduction in interest on loans, a waiver of part of the overdue interest, a rescheduling of loan repayments, a 70% reduction in the company’s equity capital, a conversion of certain debt into equity and an infusion of fresh equity funds by its promoters/sponsors.

 

The effect of the DRP had been accounted for in its results for the year ended 31 March, UIL stated.

 

Net loss increased to Rs34.76m in Q2 from Rs2.40m a year ago while total income rose to Rs190m from Rs122.59m.

 

UIL also incurred a net loss of Rs37.66m on total income of Rs558.75m in 2005-06.

By: Naresh Minocha
+65 6780 4359

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