Logistics firm Arshiya Group today said Edelweiss Asset Reconstruction company (EARC) is restructuring its debt.
The objective of the restructuring was to realign its debt with focus to turn-around the operations of the company.
"As per the restructuring agreement, the group debt as acquired by EARC has been restated at Rs 1,338 crore. The lenders have also agreed to subscribe to the equity and zero coupon rate optionally convertible redeemable preference shares (OCRPS) against the balanced debt of Rs 1,262 crore," the company said in a release here today.
The lenders are entitled for 25 per cent of the equity capital of the company (including OCRPS).
Considering conversion of all OCRPS, the promoters holding reduces to 55.35 per cent from current 75 per cent holding, lenders 25 per cent and public 19.65 per cent.
Ernst and Young (EY) are advisors to the restructuring transaction.
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