Bajaj Hindusthan Sugar has received approval from Overseeing Committee for implementation of S4A Resolution Plan. Out of total debt of Rs 8284.59 crore considered under the S4A Scheme, the Sustainable Debt (Part A) is considered at Rs 4789.35 crore (57.81%) whereas balance debt of Rs 3495.25 (42.19%) is considered as Unsustainable Debt (Part B).
RBI’s S4A framework stipulates dilution in Promoters’ shareholding at least in the same proportion as that of Part B to total debt. Accordingly, the promoter shall dilute their shareholding from the current level of 26.02% to 15.43% by way of sale of a part of its shareholding to the JLF Members. Promoters of the Company will have a right of first refusal (ROFR) over the equity sharesiOCDs held by the JLF Lenders.
For Part A, interest and principal obligation of Term Loan and Working Capital will continue as per the existing repayment schedule. Debt servicing shall be made out of cash flows from operations, without any change in terms of repayment.
For Part B, a portion of Rs 12 crore will be adjusted against the sale consideration payable by the JLF members to the promoters towards aforesaid dilution and the balance portion of Part B of Rs 3483.25 crore would be converted into Optionally Convertible Debentures (OCDs) as per the terms and conditions stipulated in the S4A Resolution Plan.
| Company Name | CMP |
|---|---|
| Shree Renuka Sugar | 28.14 |
| Bajaj Hindusthan Sug | 18.80 |
| Triveni Engg. & Inds | 393.00 |
| Balrampur Chini Mill | 486.00 |
| Dalmia Bharat Sugar | 394.05 |
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