CIAL repays HUDCO dues

Mar 29, 2012 |

Kochi

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The Cochin International Airport Ltd (CIAL) has repaid outstanding dues totalling Rs 100 crore in cash and shares to the Housing and Urban Development Corporation Ltd (HUDCO), as per the recent out of the court settlement reached with the central agency.

“The company withdrew the deposit with the Debt Recovery Tribunal (DRT) and the dues are being repaid after deducting Rs 10 crore towards the issuance of equity shares to HUDCO as per the new agreement,” a Cochin International Airport Limited official said.

CIAL had taken a loan of Rs 143 crore from HUDCO to fund airport construction works during the 1995-2000 period at an interest of around 17 per cent.

In March 2003, CIAL and HUDCO had decided to fix the outstanding liability at `175 crore (including interest).

The airport company, however, rejected HUDCO’s proposal to convert shares for `52 crore, leading to the court proceedings.

Nevertheless, they arrived at a breakthrough on February 13.

As per the resolution between them, the Cochin International Airport Limited would repay the outstanding dues to the corporation in cash and HUDCO will then purchase the shares for `10 crore.

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