New Delhi, Aug 25: The government is likely to invite financial bids for privatisation of Hindustan Copper by mid-September even as it awaits the consent of creditors for the sale. The inter-ministerial group on disinvestment which met here recently, decided to go ahead with financial bids without awaiting the response from lenders.
Sources said the meeting resolved that transaction documents had incorporated a provision for protection of lenders by way of substitution of guarantee.
Bids for the copper major were delayed as the government resolved to settle the issue of guarantee extended to the bond and debenture holders.
Lenders stood to lose the protection of guarantee which would cease upon disinvestment forcing the government to ask the company to settle the matter with the former.
Company chairman and managing director BK Menon, who had been asked to negotiate with lenders, is reported to have held two rounds of meetings with creditors earlier this month. Bureau Report