Monday, October 8, 2007

Garware Polyester accepts IDBI settlement package

CHENNAI: Garware Polyester Ltd has informed the BSE that the board of directors of the company has approved the one-time settlement (OTS) package offered by IDBI vide a circular resolution dated September 28.

The package was sanctioned by IDBI vide its letter dated March 15. Subsequently, IDBI modified the said package vide letter dated August 2.

The main package entails cash payment of Rs 84.24 crore toward principal outstanding of NCDs, corporate loan, zero coupon bonds and negotiated settlement amount (Rs 83.24 crore) and deferred interest (Rs 1 crore) and conversion of Rs 6 crore out of defer red interest into equity as per SEBI guidelines.

It also stipulates conversion of remaining Rs 49.54 crore of deferred interest on NCDs/corporate loan into 0.01 per cent cumulative redeemable preference shares, which would be redeemable in three equal annual instalments between April 1, 2014 and April 1, 2016.

The package provides for waiver of Rs 27.95 lakh payable towards further interest and other charges (liquidated damages).

The board has also approved a plan to increase the authorised share capital of the company and make a preferential issue to IDBI. - Our Bureau

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