City-based infra development firm IVRCL Ltd today said its lenders are deliberating on various debt conversion options of the company under the Corporate Debt Restructuring (CDR) mechanism. Strategic debt conversion option will give lenders the right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package and take control of the company operations. The company is under CDR mechanism with the lenders. The CDR lenders have various options of restructuring of debt of the company and the Strategic Debt Restructuring (SDR) option was one of them in terms of Reserve bank of India guidelines. "To the best of our knowledge, the matter is still being deliberated by the lenders among themselves and no communication has been received by the company yet," IVRCL said in a filing with bourses. As on June 30, the promoters stake in the company stood at 8.7 percent.
The company is yet to disclose the promoters, stake as on September 30. IVRCL stoke closed at Rs 9.47 apiece up 16.48 percent backed by the news of change of management of the company. Last year the company recast its Rs 7300 crore debt under CDR package.
In a separate filing the company said it made an allotment of 1,50,46,858 equity shares of Rs 2 each, at issue price of Rs 24.39 per share to International Asset Reconstruction Company Pvt Ltd (CDR Lender) who have signed the Master Restructuring Agreement. This allotment is towards conversion of funded interest term loan into equity, for the period of December 01, 2013 to August 31, 2015.
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