Bajaj Hindusthan gets board nod for over $1B debt recast plan

Noida-based sugar and ethanol manufacturer Bajaj Hindusthan Ltd has obtained its board approval for the debt restructuring package worth around Rs 6,500 crore (over $1 billion) under Joint Lenders Forum (JLF), as per a stock market disclosure.

The board of the company accepted the final report on debt restructuring package in respect of outstanding debts of the company, which include working capital loans of Rs 3,667.75 crore and term loan of Rs 2,864.79 crore.

As per the restructuring package, 70 per cent of funding for interest on restructured loan is proposed to be converted into equity shares at a price determined by SEBI guidelines and balance 30 per cent will be repaid over the next five years from September this year.

The scheme envisaged extended repayment tenure of 10 years, including moratorium period of two years from cut off date (July 31, 2014) and funding of interest for a period of two years from the cut-off date.

The scheme also envisages providing personal/corporate guarantees, providing collateral security and infusion of Rs 200 crore in a phased manner from promoter/ promoter group, the statement added.

The structuring is subject to lenders' approval.

Bajaj Hindusthan, a part of the Shishir Bajaj Group, is engaged in sugar manufacturing, distillery operations and bagasse-based power generation. The company is one the largest sugar manufacturing companies in Asia and also the largest industrial alcohol manufacturer in the country.

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