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Kesoram's board approves issuance of debentures up to Rs

Kesoram Industries is focusing on a sustainable turnaround and expecting to conclude its second phase of the restructuring process by inducting the strategic investor into it and finalising the debt resolution plan with its bankers. "We hope to conclude the ongoing restructuring by December.

PTI | Kolkata | Updated: 30-11-2020 22:54 IST | Created: 30-11-2020 22:54 IST
Kesoram's board approves issuance of debentures up to Rs

B K Birla Group flagship Kesoram Industries Ltd on Monday said its board and the fund-raising committee have approved issuance of non-convertible debentures or optionally convertible debentures up to Rs 2,200 crore on a private placement basis. Conversion of the existing loan into equity shares up to Rs 100 crore and zero-coupon optionally convertible redeemable preference shares up to Rs 500 crore to the existing lenders were also approved, it said.

"Kesoram proposes to execute the resolution plan with the existing lenders and complete the same at the earliest. The infusion by the investors will aid the settlement with the existing lenders.

"This will improve the tight working capital position and create the environment for improving the business operations," the company said after the board meeting. Kesoram Industries is focusing on a sustainable turnaround and expecting to conclude its second phase of the restructuring process by inducting the strategic investor into it and finalising the debt resolution plan with its bankers.

"We hope to conclude the ongoing restructuring by December. This involves induction of a strategic investor who will infuse funds to create ample liquidity for ramping up operations and clearing of the current dues of the lenders," Kesoram's wholetime director and CFO P Radhakrishnan had told PTI earlier this month. The first phase of the restructuring process includes the demerger of its tyre business from the company.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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