Morepen issues fresh capital to banks, FIs

By Staff
|
Google Oneindia News

Mumbai, June 5: Morepen Laboratories Ltd today announced that it has issued fresh capital of Rs 103 crore to banks and financial institutions as part of settlement under the corporate debt restructuring scheme (CDR), commencing the implementation of the sanctioned package.

The cash component of settlement will be paid off within a month's time, the company informed the Bombay Stock Exchange (BSE) today.

Commenting on the development, Morepen's chairman and managing director Sushil Suri said ''This settlement with the banks was a major milestone on the revival path of the company. The company would be making arrangement for settlement with fixed deposit holders after this process is over.'' The company had a total debt of Rs 757 crore, out of which lenders for Rs 574 crores have opted for one time settlement (OTS) between 15 per cent and 25 per cent of their principal outstanding.

As part of the settlement, debt worth Rs 103 crore has been converted into Equity and Optionally Convertible Preference Shares (OCPS).

The company has allotted 75.17 lakh shares at the rate of Rs 20 each, amounting Rs 15.03 crore. The company has also allotted OCPS amounting to Rs 88.03 crore. The OCPS carrying a coupon rate of 0.01 per cent would be redeemed or converted into equity shares at SEBI determined price at the end of seven years.

The issuance of equity has resulted in an increase by 3.43 per cent in the issued equity share capital.

The company proposes to settle the cash component of Rs 98.5 crore as per the CDR OTS settlement within one month. The company has already tied up necessary funding with international investors.

UNI

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X