InterDril in humiliating asset auction sale

Vol 16, PW 25 (11 Jul 13) People & Policy
     

InterDril Asia, a Mumbai-based drilling tools producer, must be ruing the day its promoters ventured into the power generation business.

Last month, state-owned Oriental Bank of Commerce began proceedings to auction InterDril’s office in the Mumbai suburb of Santacruz and its factory at Khalapur on the city outskirts to recover unpaid loans and accumulated interest totalling Rs93cr ($15m). “Loan recovery proceedings have begun,” confirms an official in the bank’s Mumbai asset recovery unit.

When asked about rumours that InterDril has won a two-month reprieve by leveraging (ruling) Congress party connections in Delhi, our source adds: “I'm not aware of any grace period given to InterDril." Oriental Bank on May 7 published a newspaper advert saying it had taken possession of InterDril’s office on May 4 and its factory on May 7 as “the borrower failed to pay” the loan and interest due.

InterDril was given 30 days or until June 7 to pay up or face the humiliating prospect of a public auction of its assets. InterDril had earlier failed to pay despite a demand notice on December 1, 2012 giving it 60 days to comply.

The company was set up in 1993 and until 2006 was a market leader in the manufacture and repair of specialised drilling and fishing tools for the oil industry. “But today InterDril survives on repair assignments only," says a well-wisher.

"They hardly manufacture anything. For half the month the factory is shut to save electricity.

Many employees have left and those who stayed are paid every six months."