NEW DELHI, Aug 1: Cash-Strapped Parasrampuria Synthetics Limited (PSL) is believed to have decided to sell its most important synthetics division, accounting for over 70 per cent of the company's 1996-97 turnover of Rs 305 crore, to get rid of its loan-sharks.

Inside sources say that the synthetic fibre giant's total debt is over Rs 365 crore, far exceeding even its turnover. The company's problems have been compounded by a massive loss of Rs 76 crore.

ICICI, its lead institution, in fact, is learnt to have recalled its loan. PSL has defaulted in repayment of term loans to financial institutions. The company has, on the other hand, sought its approval for loan restructuring.

The sources say the company is in talks with a few parties, including Bombay Dyeing and two Korean companies, for the sale of the synthetics division or hive off to a joint venture, in which Parasrampuria brothers or their company will have only a very small stake.

The group hopes to rake in at least Rs 325 crore from the sale of the polyester filament yarn (PFY) and polyester chips units at Bhiwadi in Rajasthan. PSL's general manager (finance) R Mahajan confirmed that the company had defaulted in repayment of loans.

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