Shree Renuka Sugars announces additional investment by Wilmar Sugar Holdings

Investment is conditional on successful completion of a debt restructuring package

Shree Renuka Sugars announced Preferential Issue of upto 50,00,00,000 0.01% Compulsorily Convertible Preference Shares (CCPS) of Rs. 16.27 each, at par, to Wilmar Sugar Holdings (WSH), Singapore. The investment is subject to the successful completion of a debt restructuring package which would entail, among other things:

(i) WSH making an additional investment of Rs 783.96 Crores in SRSL (Infusion) for the purpose of up-front repayment and settlement of part of the Debts and to fund working capital requirements of SRSL;
(ii) lenders converting part of the Debts into equity shares and convertible securities of SRSL;
(iii) waiver of part of the Debts; and
(iv) restructuring of the remaining Debts through changes in the payment terms on the terms of a restructuring package (Restructuring Package).

Completion of the issue is subject to fulfillment of conditions precedent set out in the Subscription Agreement, which include, inter alia, the receipt of approvals from shareholders of SRSL, the Reserve Bank of India's Oversight Committee on the Restructuring Package, and anti-trust clearances from the relevant competition authorities.

The Company hopes that this exercise, once completed, would significantly pare its debt burden and interest cost in India and would also free the Company of all guarantees and obligations related to its overseas subsidiaries.

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