Shree Renuka Sugars loses ground after debt restructuring exercise

Shree Renuka Sugars on Friday has announced a preferential issue of up to 50 crore, 0.01% compulsorily convertible preference shares (CCPS) of Rs 16.27 each, at par, to Wilmar Sugar Holdings Pte. Ltd. (WSH), Singapore. 
 
The investment is subject to successful completion of a debt restructuring package which would entail WSH making an additional investment of Rs 783.96 crore in SRSL for the purpose of upfront repayment and settlement of part of the debts and to fund working capital requirements of SRSL.
 
Lenders of the company are converting their part of the debts into equity shares and convertible securities of SRSL while waiver of part of the debts and restructuring of the remaining debts through changes in the repayment terms will be on the terms of a restructuring package.
 
The completion of the issue is subject to fulfillment of conditions set out in the subscription agreement, which include, inter-alia, the receipt of approvals from shareholders of SRSL, the Reserve Bank of India’s Oversight Committee on the restructuring package, and anti-trust clearances from the relevant competition authorities.
 
Meanwhile, the stock traded in negative territory, losing 0.525 at Rs 18.96 per share on BSE. The stock on BSE attracted a traded quantity of 14.82 lakhs.