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FIs' Singapore meet off as DPC pulls out

IDBI-led financial institutions have cancelled their crucial Singapore meet with Enron's Dabhol Power Company after the company's refusal to attend the same, as a fallout of the lenders moving the Bombay high court.

"If DPC is not going to attend, then the very objective of the ensuing discussion becomes meaningless. So we have cancelled the two-day meet beginning Thursday," FI sources said in Bombay on Wednesday.

"DPC will not attend the Singapore meet following the legal course preferred by FIs, which has put in jeopardy the negotiation meetings convened by them to discuss the purchase of foreign sponsor's equity by them," DPC managing director K Wade Cline said.

The legal action had sealed 'any possibility' of arriving at an amicable solution in Singapore, he said.

In a communication to IDBI chairman P P Vora and ICICI executive director S Mukherji, he said the legal action was an effort to prevent DPC's foreign investors from exercising previously agreed contractual rights.

Furthermore, in a separate statement DPC said it was disappointed with the legal action taken by Indian lenders, which was an attempt to deny DPC's foreign sponsors and lenders of their previously agreed legal claims.

"It is surprising that it took place on the eve of Prime Minister A B Vajpayee's visit to the US," it said.

The FIs appeal was surprising as it happened in advance of discussions specifically requested by FIs in Singapore and by the Centre in Washington DC, DPC said.

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