Dts Plans Gsm-Based Cellphones In 3 States

Financial institutions led by ICICI Ltd has agreed to convert around Rs 30.69 crore outstanding loans of Herdillia Unimers Ltd, a Duncan Goenka Group company, into equity and zero-coupon non-convertible debentures.

The conversion is part of a restructuring package laid out by ICICI for preventing the company from being referred to the Board of Industrial and Financial Restructuring (BIFR).

Herdillia Unimers had accumulated losses of Rs 35.47 crore till 1998-99.

G G Gogate, managing director of Herdillia Unimers, confirmed the restructuring package put forward by financial institutions.

Of the Rs 30-crore outstanding loans, Rs 12.69 crore will be converted to equity and Rs 18 crore will be converted to zero-coupon debentures.

 

The loan component after conversion will come down to Rs 8.4 crore and will save an interest outgo of Rs 7 crore in the first year and Rs 7.5 crore in the next year, Gogate added.

It has an outstanding short-term loan of Rs 62 lakh from several banks.

After the conversion of loans into equity, the promoters contribution would go up to 50 per cent from the present 23 per cent, financial institutions stake would rise to 40 per cent from the present 22.3 per cent, the public stake will come down to 8 per cent from 46.5 per cent.

Uniroyal stake will be around 1.5 per cent from the present 10 per cent.

The domestic industry was hit badly due to dumping from Japan. With the Union government recently declaring a floor price ranging from Rs 100-104 on imports, the domestic industry has looked up.

The company which was operating at 35 per cent capacity has touched 55 per cent in 1998-99 with the revival I the Ethylene Propylene Diene Monomer industry (EPDM).

The ICICI package is part of its strategy to help the industries which are hit due to economic slow down and competition from imports.

The Instituti