Bilt Recast

APR will hold 65 per cent in BCL's equity, and the balance will be offered to a private equity fund along with a portion of APR's equity. Bilt is also receiving a sum of Rs 135 crore through a private placement which will see its equity capital rise by Rs 10 crore to about Rs 60 crore.

The cash inflow from both the transactions to Bilt will be Rs 224 crore. Bilt will need these proceeds to repay its 4 per cent convertible bonds due in 1999 with a liability of Rs 121.73 crore. Its total debt burden amounted to Rs 1030.15 crore as on March 31, 1997, of which interest accrued and due itself amounts to Rs 60.07 crore.

 

The chemicals division has taken only Rs 36 crore of debt leaving Bilt to service the rest with the aid of its paper division and an underperforming investment portfolio.

Its net profit in the first half of 1997-98 has fallen by 74 per cent to Rs 7.62 crore and is unlikely to improve in the near future. Analysts expect Sinar Mas' aggressive positioning in the country to further affect its paper business.