BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

Case No.70/2006 Duncans Industries Ltd. (DIL)
release of securities shall be done by all the secured lenders
simultaneously.
e) All securities including collaterals provided by the promoters of
DIL / their associates in connection with the said facilities shall
stand discharged / released by the lenders and all the title deeds
and other documents kept as / evidencing security with respect to
the assets (movable and immovable) of the Fertilizer Undertaking
shall be released and delivered by the secured lenders in favour
of and to KFCL and all the assets of the Fertilizer Undertaking
shall be free from all and any existing encumbrances.
f) Upon payment of OTS amount, the security on the assets of the
Tea Division including personal guarantees of the promoters for
WCTL / cash credit facility of Rs 60 Cr pertaining to Tea Division
along with interest and other penal charges thereon, to be
retained by the secured lenders. All other securities and
personal guarantees provided as collaterals by the promoters /
associates of DIL shall stand released by the lenders.
g) All the secured creditors shall waive interest, coupons, penal
/compound interest, balance of the principal amount, other
charges / claims, rights etc. payable in respect of the above
mentioned loans and cumulative preference shares held by
secured lenders issued to them against part of the unpaid interest
shall stand cancelled on sanction of the Scheme.
h) In CDR MC cum joint CDR Lenders Meeting held on 30 th August,
2010, SBI and SBP have in principle agreed to the settlement
proposal as contained in the DRS subject to the final approval of
their appropriate authority and CBI has given its in principle
consent to the settlement proposal. ARCIL vide its letter dated
27.08.2010 also stated that they are in principle agreeable to the
de-merger of the Fertilizer Division through a JV with the Jaypee
Group and DRS may be submitted to BIFR for circulation but they
would communicate their decision on the settlement proposal as
contained in the DRS after their necessary internal approval.
Strategic Investor (Jaypee Group) has also conveyed their
acceptance to proposal of the CDR lenders to bring in 50% of the
settlement amount to be kept in a ESCROW Account with SBI
(OA) on sanction of the Scheme.
i) Further in the Joint Stakeholders Meeting (chaired by SBI ) held
on 1.10.2010. ARCIL reiterated its in principle consent to the demerger
of the Fertilizer Division and advised DRS may be
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