CORPORATE RESTRUCTURING - REVIVAL & RESTRUCTURING OF SICK COMPANIES

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d for meeting replenishment and much needed modernization and up gradation programmes * Technological obsolescence * Sweeping changes across the industry * Political and economic factors * Change in consumer behaviour * Lack of timely government support * Mismanagement by directors * Diversion and misapplication of funds * Reckless investments in other businesses * Disproportionate investments Reasons for Industrial Sickness A) Internal Causes 1) Project related - under estimation of project cost, non availability of critical information having a vital bearing on the project, delayed project implementation and resultant cost escalation 2) Human resource related - poor quality management, excessive commitment to non app....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n and submit the same to the Tribunal along with an application containing such particulars as may be prescribed for determination of the measures which may be adopted with respect to such company: If the Tribunal appoints an operating agency in order to conduct an enquiry that a company has become a sick industrial company, then the industrial agency is required to prepare and submit a schedule in respect of referred company by providing the following measures: A) Financial reconstruction B) Proper management of sick industrial company by change in, or takeover of C) The amalgamation of the sick industrial company or vice-versa The Tribunal may finalize the scheme on the suggestion of the operating agency and thereafter formally sanct....