Education company Educomp Solutions has obtained final approval from CDR Empowered Group for the proposed restructuring of its rupee debt to correct the asset liability mismatch on its balance sheet, according to a disclosure on Wednesday.
The company had moved the CDR cell in June last year for restructuring its debts.
The debt restructuring includes working capital debt of Rs 399.04 crore and long-term debt of Rs 83.05 crore.
The restructuring package agreed with CDR lenders (led by State Bank of Patiala) envisages extended repayment tenure of 10 years, including a moratorium period of 2.5 years from the cut-off date (April 1, 2013) and funding of interest for two years from the cut-off date, the company said.
Shares of the company went up as much as 8 per cent in the early morning trade on the BSE.
In January this year, the company said that its K12 arm Educomp Infrastructure & School Management Ltd received approval from the CDR Empowered Group for restructuring its debt of Rs 715.63 crore. The restructuring package agreed with CDR lenders (led by Axis Bank) envisages extended repayment tenure of 153.5 months, including moratorium period of 33.5 months, from cut-off date and funding of interest for two years from cut-off date. The package also provides for additional loans of Rs 73 crore to fund critical capital expenditure.
In 2013, Educomp made two exits in what it calls non-core segments. It sold off its entire 50 per cent stake in EuroKids International to a consortium of investors led by Gaja Capital. Also, it completed the sale of 50 per cent stake in vocational training business IndiaCan to joint venture partner Pearson.
Educomp Solutions, once India’s largest education company, registered a net loss of Rs 87.6 crore for the quarter ended December 31, 2013, against a net profit of Rs 8.01 crore in the year-ago period. Sales of the company also fell to Rs 155.33 crore the quarter ended on December 31 from Rs 247 crore in the third quarter of FY13.
(Edited by Joby Puthuparampil Johnson)