Hindustan Motors today said its board has alloted securities on a preferential basis to the lenders, banks and financial institutions, in accordance with approval of corporate debt restructuring process.
Subsequent to the approval of the shareholders at the AGM, the company's board has allotted the securities on preferential basis to the lenders in accordance with approval of Corporate Debt Restructuring Empowered Group granted at its meeting held on June 28, 2014, Hindustan Motors (HM) said in a filing to the BSE.
Earlier this year, the cash-strapped company's management had declared suspension of work at its Uttarpara plant in the West Bengal.
The Uttarpara plant, which manufactures Ambassador car, had been facing severe cash crunch, and orders for manufacturing cars could not be executed.
