April 4, 2017 / 12:47 PM / in 4 months

BRIEF-Arshiya Ltd says lenders entitled for 25 pct of co's equity capital

2 Min Read

April 4 (Reuters) - Arshiya Ltd:

* Says restructuring of debt with Edelweiss Asset Reconstruction Co, which has acquired substantial debt from most lenders in group

* Says as per the restructuring agreement, the group debt as acquired by EARC has been restated at 13.38 billion rupees

* Says lenders also agreed to subscribe to equity and redeemable preference shares against balanced debt of 12.62 billion rupees

* Says lenders are entitled for 25% of the equity capital of the company

* Considering conversion of all ocrps, promoters holding reduces to 55.35% from current 75% holding, lenders 25% and public 19.65% Source text:

Arshiya Limited and its subsidiaries announced the restructuring of its debt with Edelweiss Asset Reconstruction Company (EARC), which has acquired substantial debt from most of the lenders in the Group.

As per the restructuring agreement, the Group debt as acquired by EARC has been restated at Rs. 1,338 crore. The lenders have also agreed to subscribe to the equity and Zero Coupon rate Optionally Convertible Redeemable Preference Shares (OCRPS) against the balanced debt of Rs. 1,262 crore. The lenders are entitled for 25% of the equity capital of the company (including OCRPS). Considering conversion of all OCRPS, the promoters holding reduces to 55.35% from current 75% holding, Lenders 25% and Public 19.65%. Ernst and Young (EY) are advisors to the restructuring transaction. Further company coverage:

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