Edelweiss Asset Reconstruction Company (Edelweiss ARC) has reportedly bought 10% stake in engineering and metals firm Electrotherm India, which defaulted on Rs 3,200-crore loans. Edelweiss’ move to acquire said stake by converting part of debt into equity is part of a large debt restructuring programme which envisages Rs 200-crore funds infusion by promoter Mukesh Bhandari.
Over the last one year, Edelweiss ARC had acquired nearly 50% of Electrotherm’s debt from banks, which enabled it to convert debt into equity.
Electrotherm India is engaged in manufacturing of steel, electric vehicle and providing engineering services. The company also operates research and development division which focuses on enhancing its function, develop and upgrade its equipments.
