Murli Cement, with a cement plant at Chandrapur with a debt of Rs 1450 crore to a consortium of 18 PSU banks, has failed to meet terms of a corporate debt restructuring (CDR) plan. With the CDR withdrawn, banks can now go ahead selling company assets and recover the debt. Murli Cement has approached the Board of Industrial Financial Reconstruction (BIFR) and its case was admitted in BIFR on November 26 last year.
BIFR implies that the company can hold the recovery action till the case is decided. Though the management has not validated it, sources close to the promoters said the loan could not be repaid as the commissioning of the project was delayed due to hassles in land acquisition.