Renuka Sugars' Brazil arm to see debt fall by Rs 168 crore

Leading sugar refiner Renuka Sugars' Brazil subsidiary will see its debt coming down by Rs 168 crore following a court order.
In a filing to the BSE, the company said the designated court in Sao Paulo, Brazil has approved the reorganisation of debt of its subsidiary Renuka Vale do Ivai (Renuka VDI).
As per the recast, Renuka VDI's principal debt would come down by Rs 168 crore, while the interest rate be reduced to 5-7 per cent from 14-15 per cent.
The principal repayment term has also been extended.
"Some banks will lend new money to Renuka VDI. Total new influsion of funds will be USD 7 million," the filing said.

Total debt of Renuka VDI will now be around Rs 980 crore.
The company's share price rose by 11.04 per cent to close at Rs 18.10 apiece on the BSE today.
Mumbai-based Renuka Sugars had in 2010 forayed into Brazil, the worlds largest sugar producer, by investing Rs 1,765.10 crore to acquire stakes in two companies.