Bajaj Hindusthan Sugar gains 6% as overseeing committee approves S4A debt resolution plan
Bajaj Hindusthan Sugar share price rallied 6 percent intraday Friday after the S4A debt resolution plan submitted by lead bank State Bank of India on behalf of Joint Lenders Forum has been approved by overseeing committee.
“As per the plan, out of total debt of Rs 8,284.59 crore considered under the S4A scheme, the sustainable debt (Part A) is considered at Rs 4,789.35 crore (57.81 percent) whereas balance debt of Rs 3,495.25 crore (42.19 percent) is considered as unsustainable debt (Part B),” the company said.
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 company’s promoter will dilute shareholding from the current level of 26.02 percent to 15.43 percent by way of sale of a part of its shareholding to JLF members, the company said.
Promoters will have a right of first refusal over the equity shares/OCDs held by JLF members.
For sustainable debt, interest and principal obligation of term loan and working capital will continue as per the existing repayment schedule.
As far as unsustainable debt is concerned, Bajaj Hindusthan said a portion of Rs 12 crore would be adjusted against sale consideration payable by the JLF members to promoters towards dilution and balance portion of Rs 3,483.25 crore would be converted into optionally convertible debentures.
The company has initiated necessary steps to implement S4A scheme.
At 12:11 hours IST, the stock price was quoting at Rs 15.35, up Rs 0.12, or 0.79 percent on the BSE.