The RBI mandated overseeing committee has approved the Scheme for Sustainable Structuring of Stressed Assets (S4A) for Hindustan Construction Company (HCC) Limited. In this regard, HCC said on November 6, 2016 that the ICICI-led Joint Lenders' Forum had proposed the scheme for it. With this, HCC became the first company to secure approval from the committee under the RBI's S4A scheme.
The total funded debt of HCC is about 5107 crore which has been considered under the scheme. It will be divided into two parts. The first part (sustainable debt) amounts to Z 2681 crone (52.50% of the total debt). The second part (unsustainable debt) totals 2426 crore (47.50%). The lenders will subscribe to 24.44% fresh equity (? 1008 crore, assuming a 40 rate), which will bring down the promoter holding from 36.07% to 27.44%.
The share price will be determined as per SEBI guidelines and, accordingly, debt will go down to the extent of the conversion amount. The balance of the unsustainable debt will be converted into Optionally Convertible Debentures for 10 years, with a coupon rate of 0.01%.
The total funded debt of HCC is about 5107 crore which has been considered under the scheme. It will be divided into two parts. The first part (sustainable debt) amounts to Z 2681 crone (52.50% of the total debt). The second part (unsustainable debt) totals 2426 crore (47.50%). The lenders will subscribe to 24.44% fresh equity (? 1008 crore, assuming a 40 rate), which will bring down the promoter holding from 36.07% to 27.44%.
The share price will be determined as per SEBI guidelines and, accordingly, debt will go down to the extent of the conversion amount. The balance of the unsustainable debt will be converted into Optionally Convertible Debentures for 10 years, with a coupon rate of 0.01%.
Subscribe now united india bank po online test
No comments:
Post a Comment