Kolkata, Aug 18: Berger Paints India and a US-based paint company are in active dialogue to buy out promoter's stake in Jenson & Nicholson (J&N) which has run into severe debt problems. A Mumbai-based official of J&N said that Berger Paints, which had recently carried out due diligence exercise for picking up stake in the company, was in active dialogue with the management committee headed by the principal promoter, S P Sinha, whose holding in J&N exceeds 50 per cent.
Facing serious financial crisis since 2000, the company closed its head office in the city and retrenched 48 employees. The head office had been shifted to Gurgaon in June.
The official said that the debt restructuring proposal, which was mandated to Singapore-based investment banker Judis Moneata, will be submitted by September-end this year.
In June-end, the company management hired the investment banker to come up with a comprehensive debt restructuring proposal within a time-frame of 90 days.
Bureau Report