Brief: Arshiya Ltd says lenders entitled for 25 pct of co's equity capital

Arshiya

04/04/2017 13:39

April 4 (Reuters) - Arshiya Ltd  ARSH.NS : 
    * Says restructuring of debt with Edelweiss Asset 
Reconstruction Co, which has acquired substantial debt from most 
lenders in group 
    * Says as per the restructuring agreement, the group debt as 
acquired by EARC has been restated at 13.38 billion rupees 
    * Says lenders also agreed to subscribe to equity and 
redeemable preference shares against balanced  debt of 12.62 
billion rupees 
    * Says lenders are entitled for 25% of the equity capital of 
the company 
    * Considering conversion of all ocrps, promoters holding 
reduces to 55.35% from current 75% holding, lenders 25% and 
public 19.65% 
 
Source text:  
    Arshiya Limited and its subsidiaries announced the 
restructuring of its debt with Edelweiss Asset Reconstruction 
Company (EARC), which has acquired substantial debt from most of 
the lenders in the Group.  
    As per the restructuring agreement, the Group debt as 
acquired by EARC has been restated at Rs. 1,338 crore. The 
lenders have also agreed to subscribe to the equity and Zero 
Coupon rate Optionally Convertible Redeemable Preference Shares 
(OCRPS) against the balanced  debt of Rs. 1,262 crore. The 
lenders are entitled for 25% of the equity capital of the 
company (including OCRPS). Considering conversion of all OCRPS, 
the promoters holding reduces to 55.35% from current 75% 
holding, Lenders 25% and Public 19.65%. Ernst and Young (EY) are 
advisors to the restructuring transaction.  
 
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