Bajaj Hindusthan gets nod for debt restructuring

Bajaj Hindusthan Sugar Ltd. | Sugar | Agriculture & Allied activities | BSE: 500032 | NSE: BAJAJHIND

29 Dec 2014 Evaluate

Bajaj Hindusthan has received an approval for the debt restructuring package worth around Rs 6,500 crore under Joint Lenders Forum (JLF). The board of the company, at their meeting held on December 25, 2014, has accepted the final report on debt restructuring package in respect of outstanding debts of the company, which include working capital loans of Rs 3,667.75 crore and term loan of Rs 2,864.79 crore. The scheme envisaged extended repayment tenure of 10 years, including moratorium period of two years from cutoff date (July 31, 2014) and funding of interest for a period of two years from the cut-off date.

As per the restructuring package, 70 per cent of funding for interest on restructured loan is proposed to be converted into equity shares at a price determined by SEBI guidelines and balance 30 per cent will be repaid over the next five years from September this year. The restructuring scheme also envisages providing personal/corporate guarantees, providing collateral security and infusion of Rs 200 crore in a phased manner from promoter/ promoter group.

Bajaj Hindusthan, a part of the 'Bajaj Group’, is one the largest sugar manufacturing companies in Asia and also the largest industrial alcohol manufacturers in India. It is engaged in sugar manufacturing, distillery operations and bagasse-based power generation.