Rel Defence board approves refinancing scheme

The board of Reliance Defence and Engineering Ltd today approved a refinancing scheme under which the company would issue equity shares worth up to Rs 655 crore apart from non-convertible bonds to the lenders.
The board of directors at its meeting held today has approved "refinancing scheme with the lenders of the company and consequent issuance of equity shares," Reliance Defence and Engineering Ltd said in a filing to the BSE.
Issue will be made to the existing lenders of the company, pursuant to the refinancing scheme, subject to all permissions, sanctions and approvals under the applicable provision of law, it said.

Under the scheme, the company will also issue compulsorily redeemable preference shares worth up to Rs 2,300 crore.
"Issue will be made to the existing lenders of the company, pursuant to the refinancing scheme," it said.
The company under the refinancing scheme, would issue secured non-convertible bonds worth up to Rs 250 crore, it said.

On completion of the process of refinancing, the company would exit from corporate debt restructuring scheme (CDR), it said.
Reliance Defence and Engineering Ltd's standalone net loss narrowed to Rs 132.7 crore for the quarter ended December 31, 2016 on the back higher revenue from operations.

The company had posted a net loss of Rs 293.6 crore in the corresponding quarter of previous fiscal, Reliance Defence and Engineering said in a filing to BSE.