Andhra Cement share price added almost 3 percent in the afternoon session on September 29 as the company's consortium of creditors plans to start anew the debt resolution process at the distressed company.
Jaypee Group-owned Andhra Cements' consortium of creditors plans to start anew the debt resolution process at the distressed company after receiving poor response from bidders to their first attempt to sell the asset, three people with knowledge of the matter said.
The bidding process will also be tweaked to invite offers for loan facilities of the company instead of physical assets.
Lenders led by Edelweiss Asset Reconstruction Company received bids from NCL Industries and Sagar Cements to acquire the assets of Andhra Cements. Both were rejected because they fell below lenders’ expectations, sources said.
The stock was trading at Rs 19.45, up Rs 0.50, or 2.64 percent. It has touched an intraday high of Rs 19.60 and an intraday low of Rs 18.10.
In a fresh attempt, Andhra Cements lenders will invite bids for their loan facilities unlike the recent sale process wherein lenders invited bids for assets of the company, sources added.The loan facilities are secured by plant and machinery, pledge of promoters’ shares, and the personal guarantee of promoter Manoj Gaur, according to the company’s annual report.