Lenders to acquire additional stake in IVRCL at Rs 8.7 per share

Lenders invoke SDR after firm fails to improve performance in 18 months; will jointly hold 51% or more

The Joint Lenders Forum (JLF) at its meeting held yesterday approved the Strategic Debt Restructuring (SDR) conversion package for the debt-laden IVRCL Limited.

Under this package, the lenders will convert a part of the debt of the company into equity, in one or more tranches, at a price of Rs 8.765 per equity share of face value of Rs 2 each.

This will enable the lenders to collectively hold 51 per cent or more of the total share capital of the company, pursuant to provisions of Sebi regulations, 2015 read with RBI circular on SDR.

IVRCL today informed the Bombay Stock Exchange that State Bank of India (SBI), the monitoring institution acting on behalf of the lenders has informed the company about the JLF's decision.

On November 26, 2015 the lenders forum had decided to invoke the SDR provisions as the company failed to improve its performance in over 18 months after the consortium of 20 lenders approved a corporate debt restructuring (CDR) package of 7,350 crore for the company.

After taking over the management control the lenders will work on the next logical step of finding a buyer for the company. The company is now sitting on a debt of close to Rs 9,000 crore and in the process of conversion of interest portion into equity during the CDR period the lenders have already increased their share-holding to nearly 49 per cent.