Raj Rayon Industries application for restructuring of its debt under the Corporate Debt mechanism has been considered by the Corporate Debt Restructuring (CDR) Empowered Group in its meeting held on March 24, 2014 and approval has been granted for restructuring the debt of the company.
State Bank of India (SBI) has been appointed as Monitoring Institution for the purpose of implementation of the approved package. The Monitoring Committee comprising of representative of State Bank of India, State Bank of Hyderabad, State Bank of Patiala, State Bank of Mysore and The South Indian Bank has been constituted to facilitate the process of monitoring implementation of the approved package by respective lenders and to review the performance of the company’s restructuring package on continuous basis.
The key highlights of the restructuring package are - reduction in rate of interest in existing Working Capital and Term Loan facilities on case to case basis, extension of moratorium period for repayment of existing Working Capital and Term Loan facilities on case to case basis and sanctioned of additional Working Capital facility of Rs 80.94 crore.
Raj Rayon Industries is one of the leading manufacturers of polyester yarn in India with product range including polyester texturised yarn, partially oriented yarn and fully drawn yarn , backed by high technology plants located at Silvassa in the Union Territory of Dadra & Nagar Haveli, India.