New Delhi, Aug 12: Financial bids for privatisation of Hindustan Copper (HCL) are likely to be delayed further with the government asking the management to sort out the issue of sovereign guarantees to bond holders and seeking more information from the company on environment matters. The Inter-Ministerial Group (IMG) on Disinvestment, which met recently, decided to ask for details regarding environmental clearences, sources said.

On the issue of outstanding debts, the meeting took note of the issue of guarantees extended by government towards bonds raised by the company some years back.

Bond holders would continue to enjoy the security of government guarantee only till the time that company remains in the public sector fold.
The Company's Chairman and Managing Director B K Menon has been asked to seek the consent of the bond holders as they stand to lose protection. Bond holders may be permitted to seek alternative arrangements by way of substitution of existing guarantees. Bureau Report