FIs AGREE ON ONE-TIME SETTLEMENT WITH HMT

Article Abstract:

Financial institutions (FIs) have agreed on a one-time settlement with HMT Ltd to retire Rs304 crore debt. Three FIs - UTI, IDBI and IFCI - have agreed to a one-time settlement. They have agreed to waive off compound interest, penal interest and liquidated damages of about Rs40-45 crore. HMT Ltd will carry the Rs304 crore debt on its books and will repay the principal and simple interest from its own resources. The remaining bank borrowing of Rs250 crore will be allocated as cash credit to the three new subsidiaries - HMT Machine Tools, HMT Watches Ltd and HMT Tractors Ltd - which were registered recently. (khr)

Comment:

Financial institutions (FIs) have agreed on a one-time settlement with HMT Ltd to retire Rs304 crore debt.

United States, Financial management, Metalworking Machinery

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HMT TO SPIN OFF THREE UNITS INTO SEPARATE COS

Article Abstract:

HMT Ltd plans to hive off its watches, machine tools and tractor divisions into three separate companies. HMT Ltd will be the holding company and the three new companies will be 100 percent subsidiaries. The company's working capital of Rs180 crore will be distributed among the three based on their current assets while long-term borrowings of Rs554 crore will also be divided among them. It also plans to close down 5 unviable units. (khr)

Comment:

Plans to hive off watches, machine tools & tractor divisions into 3 separate companies

Asset sales & divestitures, Farm Machinery and Equipment Manufacturing, Wheel Tractors, Watches, Watch, Clock, and Part Manufacturing, Tractors

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MACHINE TOOL MANUFACTURERS CALL FOR CUT IN DUTY TO 5%

Article Abstract:

The Indian Machine Tool Manufacturers' Association has requested the government to reduce excise duty on machine tools supplied to small-scale manufacturers to 5 percent from 13 percent now. It says that this is necessary as the small units cannot Modvat excise duty on their capital goods. It has also requested that customs duty on raw materials should be 5 percent less than the customs duty on finished machinery. (khr)

Comment:

India: Machine Tool Manufacturers' Assn asks govt to reduce taxes on machine tools supplied to small-scale manufacturers to 5%

Taxes

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