Arvind Mills Board Okays New Revamp Package

Arvind Mills revised its restructuring proposal at its board meeting held today. The move comes in wake of the company's failure to kick off the revamp package approved at its extraordinary general meeting in June 2001.

As per the new plan, the board has decided to issue up to 1.30 million debentures in place of the earlier proposed 1 million debentures. Shareholder approval for this will be sought at the forthcoming annual general meeting.

The textile major will also issue up to 4 crore convertible warrants to certain lenders. It will also issue 13 lakh secured optionally partly-convertible debentures of Rs 500 each, aggregating Rs 65 crore, to select lenders.

Of this, part A of Rs 100 each will be optionally convertible into equity shares at a later date. Part B of Rs 400 each will be non-convertible and Part C will comprise 5 detachable warrants, which will be converted into equity at a later date.

The above issues were approved by the shareholders of the company at their extra-ordinary general meeting held on June 12, 2001.

Arvind Mills has been in the red during the past two years. In fiscal 1998-99, it made a net profit of Rs 14.47 crore on sales of Rs 906 crore. In 1999-2000, the company incurred a net loss of Rs 271 crore on sales of Rs 1,215.97 crore. Sales fell 1.53 per cent to Rs 1,197 crore for the year ending March 2001.