In a Board meeting held on Saturday, the company said that while the EPC company will have working capital and current assets, the BOT company will have land and other long term assets.
IVRCL Ltd. has decided to split itself into two companies, separating the Build Operate Transfer (BOT) and Engineering Procurement Construction (EPC) parts of the business, according to a business daily.
In a Board meeting held on Saturday, the company said that while the EPC company will have working capital and current assets, the BOT company will have land and other long term assets.
The proposal will have to be approved by the joint lenders forum, and the high courts of Telangana and Andhra Pradesh among others.
"After the strategic debt restructuring (SDR) lenders would hold around 51% in each company," IVRCL Group CFO R. Balarami Reddy has been quoted as saying.
IVRCL has a debt of around rS. 5,000 crore.
At the Board meeting, the company also decided to convert part of the debt into equity shares followed by the invocation of SDR by the Joint Lenders Forum.
On 26th November, lenders had invoked SDR, a scheme which allows banks to convert debt into equity stake of a debt-laden company and take over the management.
In July last year, IVRCL had gone through CDR.
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