The Hindu : National : Sanmac making part payments to depositors

Online edition of India's National Newspaper
Friday, Dec 29, 2006
ePaper

National

National

Sanmac making part payments to depositors

Special Correspondent

Under a revival of operations scheme sanctioned by Madras High Court

CHENNAI: Sanmac Motor Finance Limited is making part payments to its depositors and shareholders under a reconstruction and revival of operations scheme sanctioned by the Madras High Court.

About 4,500 depositors received the payment since the scheme was sanctioned in October. To facilitate the disbursements, the company has opened an office at 6/44, first floor (above Hi-Tech Motors), Second Avenue, Ashok Nagar, Chennai. Phone number: 64549097.

According to a company release, the payments are to be made within three months from the date of the sanction. Given that a certified copy of the order was issued on October 30, the payments would have to be made before January 30. A senior executive of the company said it had sent communication to all the depositors and shareholders. Many letters had, however, been returned, possibly because these depositors shifted their residence. Those seeking the part payments should produce the original deposit receipt/share certificate, photo identity, the original claim form filed with the official liquidator and other documents to substantiate the claim.

The depositors would be paid 40 per cent of the principal. The shareholders would get 40 per cent of the unpaid dividend declared for 1997, while other creditors would be paid through private negotiations.

The company proposed the scheme after it defaulted on repayment in 1998 and went into liquidation. Subsequently, it was approved by the depositors and shareholders and sanctioned by the court.

Printer friendly page
Send this article to Friends by E-Mail

National