RPG Cables completes financial restructuring

New Delhi, Apr 9 (UNI) RPG Cables, a RPG Group company and maker of power and telecommunication cables, has announced the completion of its financial restructuring via infusion of Rs 151 crore.

This was done through a combination of debt and equity by Deutsche Bank AG Hong Kong and the promoters RPG Group.

RPG Cables Managing Director Nikhil Gupta said, ''The completion of financial restructuring would enable RPG Cables to meet the growing demand of its products and grow by better capacity utilisation and improved operational efficiencies.'' As per the restructuring package, existing lenders have agreed for a one-time settlement which would result in the reduction of the company's borrowings by over Rs 100 crore.

During the first three quarters, sales rose by 53 per cent to Rs 152 crore, against Rs 99 crore during the same period last year.

With the completion of financial restructuring and a strong demand growth the company expects to perform well in FY08.

It will also reduce the interest burden by Rs 12 crore annually, a statement said.

Deutsche Bank AG has been allotted Fully Convertible Debentures aggregating Rs 28 crore which will translate to about 14.9 per cent of the company's equity capital.

In addition, Deutsche Bank AG has provided working capital facilities to the company.

The company's manufacturing facilities are located at Thane, Silvassa and Mysore.

UNI