OC approves Supreme Infra case for S4A debt resolution plan

Supreme Infrastructure today said the Oversight Committee (OC) has approved a proposal for resolution of its Rs 2,410 crore debt under the 'S4A' scheme of the Reserve Bank.
Scheme for Sustainable Structuring of Stressed Assets (S4A) has been introduced to further strengthen the ability of lenders to tackle stressed assets and provide an avenue for reworking the financial structure of entities facing genuine problems.
The 'S4A Resolution Plan' proposal submitted by lead bank SBI on behalf of Joint Lenders Forum to the OC formed under the
aegis of RBI guidelines has been approved for implementation, the company said in a regulatory filing.

"Out of the total debt of appx Rs 2,410.04 crore considered under the S4A scheme, the sustainable debt (Part A) is considered at Rs 1,271.3 crore (52.75 crore) whereas balance debt of Rs 1,138.74 crore (47.25) is considered as unsustainable debt (Part B)," the filing said.
Supreme Infra said that "once implemented, the scheme would help the company to reduce its interest cost on the unsustainable portion of its debt".

Out of the present holding of the promoters, 17.95 per cent of the share capital will be transfered to lenders by invocation of existing pledged shares/ sale of promoters shares.

The resolution plan, the company said, does not involve a change in promoters, the guidelines requires the existing promoters to dilute their shareholding.
"The balance portion of Part B debt of Rs 1,134.13 crore would be converted into optionally convertible debentures (OCDs) for the tenor of 15 years," said Supreme Infra.
Repayment of OCD has to be made in seven equal instalments, commencing 2025-26, it added.
The company's share closed at Rs 95.30 a piece on BSE, up 7.87 per cent.