HM board to consider allotment of shares,debentures to lenders

Cash-strapped automobile maker Hindustan Motors today said its board will meet next week to consider alloting shares and debentures to lenders on a preferential basis, as part of the corporate debt restructuring process.

"A meeting of the company's board will be held on September 29, to consider allotment of shares and non-convertible debentures to the lenders (banks and financial institutions) on preferential basis," Hindustan Motors (HM) said in a filing to the BSE.

The allotment of shares and debentures to the lenders on preferential basis is being considered as per the corporate debt restructuring empowered group approval, it added.

Earlier this year, the company's management had declared suspension of work at its Uttarpara plant in the state.
 

The Uttarpara plant, which manufactures Ambassador car, had been facing severe cash crunch, and orders for manufacturing cars could not be executed.