Sakthi Sugars surges on settlement with FCCB bond holders

The company said it has reached an amicable settlement with FCCB (Series B) bond holders

Shares of Sakthi Sugars were up after the company said it has reached an amicable settlement with bondholders having majority of FCCB (Series B) for a possible compromise for settlemnet without involving any conversion of bonds into equity shares through the Honourable High Court of Madras.

The Honourable High Court, Madras had on 21 December 2015 passed an order on the consent memo filed jointly by the consenting bondholders and the company to the effect that the FCCB (Series B) aggregating to US $11.7 million will be settled at 65% of the face value on or before March 31, 2016 subject to RBI approval and scheme of arrangement filed vide company application no. 183 of 2015 stands withdrawn, the company said in a release.

The stock opened at Rs 33 and hit a high of Rs 35. At 12:05pm, over 570,000 shares were traded on both the stock exchanges.