HUDCO moves court for stake in Kochi airport

Kochi: The government-owned Housing And Urban Development Corporation Ltd (HUDCO) has filed a case in an Ernakulam court, asking it to direct the Cochin International Airport Ltd (CIAL) to transfer 26 percent of its equity shares to HUDCO as part of a prior agreement.
According to the petition, HUDCO had sanctioned loans worth Rs.143.23 crore to CIAL on three ocassions post 1995. In 2002, CIAL had offered to convert a part of the outstanding dues to equity shares, and appointed Pricewaterhouse Coopers as their consultant for debt restructuring.
A CIAL board resolution Feb 1, 2002, said that HUDCO, being its major financier, be requested to invest in equity capital by conversion.
But nothing has transpired since then, HUDCO said in the petition, filed Oct 30, even though the two companies had met in November 2002 over the issue.
Jean T. Mathew, one of the counsel for HUDCO, said that despite several letters to CIAL for the equity transfer, CIAL has failed to act.
The petition asked the court to direct CIAL to transfer 26 percent of its equity at par (52 million shares of Rs.10).
05/11/10 IANS/Sify

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Categories: Airports Nov 2010