Lenders approve CDR plan: Koutons Retail
Cash-strapped Koutons Retail India today said its lenders had approved a corporate debt restructuring (CDR) programme, under which the bankers led by Indian Overseas Bank could become stakeholders in the company.
In a filing to the Bombay Stock Exchange (BSE), the company said the final proposal submitted by the company was approved by the bankers under the CDR mechanism late last evening.
"The company confirms the approval of CDR package of the company by the bankers led by Indian Overseas Bank, the monitoring institution," it said.
Koutons Retail reportedly has around Rs 660 crore debt.
The CDR package envisages converting part of the working capital facilities into WCTL (working capital term loan), to fund the interest due for two years by way of a funded interest term loan and option to bankers to convert part of their debt into equity, it added.
A further reprieve for the company has been in the form of reduction in interest rate on all loans, it said, adding the final minutes is expected shortly from the CDR cell.
Koutons Retail India shares closed at Rs 24, up 9.68% from the previous close, on the BSE.