Rediff Logo
Money
Line
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Women
Partner Channels: Auctions | Health | Home & Decor | IT Education | Jobs | Matrimonial | Travel
Line
Home > Money > Business Headlines > Report
November 27, 2001
Feedback  
  Money Matters

 -  'Investment
 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      



  Call India
   Direct Service

 • Save upto 60% over
    AT&T, MCI
 • Rates 29.9¢/min
   Select Cities



   Prepaid Cards

 • Mumbai 24¢/min
 • Chennai 33¢/min
 • Other Cities




 India Abroad
Weekly Newspaper

  In-depth news

  Community Focus

  16 Page Magazine
For 4 free issues
Click here!

 
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page Best Printed on  HP Laserjets

Countdown begins for Dabhol

S Ravindran

Global lenders to the Enron-promoted Dabhol Power Company are meeting in London on November 30 to consider authorising the company to serve a final termination notice to the Maharashtra State Electricity Board.

On the same day, the DPC board too will meet in London to consider authorising managing director K Wade Cline to serve the final termination notice on MSEB. Even if Cline gets the nod from the board, he will not be in a position to serve the notice unless the lenders give the go-ahead.

“We have decided to meet on November 30 as it is convenient for us. The DPC board meeting is a pure coincidence,” sources in the lenders consortium said.

The meeting assumes significance as it is being held in the backdrop of a Bombay High Court injunction restraining DPC from serving the final termination notice.

The lenders are planning to consult their lawyers, White Case, about the feasibility of such a move.

The steering committee of the lenders comprising Credit Suisse First Boston, Citibank, Bank of America, OPIC, ANZ Investment Bank and the Industrial Bank of India will meet to take stock of the situation.

The serving of the final termination notice may pave the way for proceedings in the London Court of Arbitration. The move by the global lenders is likely to be staunchly opposed by IDBI on behalf of all domestic lenders.

If the issue ultimately goes to the London Court, then the state government will be on a sticky wicket. The domestic lenders too will take a beating as their exposure is not covered by the counter guarantee of the Union government.

YOU MAY ALSO WANT TO READ:
The Enron Saga

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report

ADVERTISEMENT