"The Dunlop management has approached us for granting the status of a relief undertaking. The state government is considering it. It is a normal practice," state government sources told PTI.
Once Dunlop, a erstwhile leading manufacturer of automobile and aero tyres, was granted the status, then both secured and unsecured creditors would not be able to drag the company to court for realising dues.
The total liability at the time of takeover by Ruia group was Rs 650 crore (Rs 6.5 billion), out of which dues of banks and financial institutions were Rs 60 crore (Rs 600 million). Liability of the workers was also Rs 60 crore.
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