IVRCL allots first tranche of 88 million shares to CDR lenders

This allotment is towards first tranche of conversion of funded interest term loan into equity

Hyderabad-based infrastructure company IVRCL Ltd has allotted nearly 88 million equity shares of Rs 2 each to the corporate debt restructuring (CDR) lenders.

This allotment is towards first tranche of conversion of FITL (funded interest term loan) into equity, the company informed the BSE.

As part of debt recast, IVRCL stated it was eligible to get a fresh loan of Rs 175 crore that could be used towards meeting working capital requirements beside getting Rs 1,400 crore bank guarantees among other facilities.

The debt recast proposed by the company was approved by the CDR Empowered Group in June, this year. Under this, there is a moratorium of 28 months on FTIL which is to be paid within eight years after the moratorium. It will carry an interest rate of 11.25 per cent.

For the quarter ended September 30, 2014, the company reported a loss of Rs 187.55 crore. The company's finance cost during the quarter stood at Rs 163.11 crore.

IVRCL scrip closed at Rs 17.25 on the BSE on Friday, up 0.88 per cent over the previous close of Rs 17.10.