Ailing Koutons Retail has got some respite as bankers have approved its debt restructuring package.
The Delhi-based retailer is burdened with a debt of Rs 600 crore and incurred a loss of Rs 35.8 crore in the April-June......
Ailing Koutons Retail has got some respite as bankers have approved its debt restructuring package.
The Delhi-based retailer is burdened with a debt of Rs 600 crore and incurred a loss of Rs 35.8 crore in the April-June
quarter. The approval of this restructuring package raises hopes that the company could indeed be prevented from going
bankrupt.
"The company confirms the approval of CDR package of the company by the bankers led by Indian Overseas Bank , the
monitoring institution," it said in a notice to stock exchanges.
Koutons Retail stock, which has seen 60% of its value wiped out this year, not surprisingly, surged 12.4% to Rs 24.40 on
NSE on Friday.
The company’s proposal for debt restructuring was fixed for final approval in the CDR meeting held on Thursday and after
due deliberations, the final proposal was approved by the bankers late in the evening, the company said.
"The CDR package envisages converting part of the working capital facilities into WCTL (working capital term loan), to fund
the interest due for two years by way of a funded interest term loan and option to bankers to convert part of their debt
into equity,” Koutons said.
That apart, interest rate on its loans will also be reduced, Koutons Retail said, without elaborating.
Apart from Indian Overseas Bank, Punjab National Bank , HDFC Bank , ICICI Bank and IDBI Bank are among the bankers having
exposure to the company, according to a media report.
The Delhi-based retailer is burdened with a debt of Rs 600 crore and incurred a loss of Rs 35.8 crore in the April-June......
Ailing Koutons Retail has got some respite as bankers have approved its debt restructuring package.
The Delhi-based retailer is burdened with a debt of Rs 600 crore and incurred a loss of Rs 35.8 crore in the April-June
quarter. The approval of this restructuring package raises hopes that the company could indeed be prevented from going
bankrupt.
"The company confirms the approval of CDR package of the company by the bankers led by Indian Overseas Bank , the
monitoring institution," it said in a notice to stock exchanges.
Koutons Retail stock, which has seen 60% of its value wiped out this year, not surprisingly, surged 12.4% to Rs 24.40 on
NSE on Friday.
The company’s proposal for debt restructuring was fixed for final approval in the CDR meeting held on Thursday and after
due deliberations, the final proposal was approved by the bankers late in the evening, the company said.
"The CDR package envisages converting part of the working capital facilities into WCTL (working capital term loan), to fund
the interest due for two years by way of a funded interest term loan and option to bankers to convert part of their debt
into equity,” Koutons said.
That apart, interest rate on its loans will also be reduced, Koutons Retail said, without elaborating.
Apart from Indian Overseas Bank, Punjab National Bank , HDFC Bank , ICICI Bank and IDBI Bank are among the bankers having
exposure to the company, according to a media report.
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