Mumbai : Reliance Defence and Engineering (RDEL) on Tuesday said it has received CDR empowered group’s approval to exit the debt refinancing scheme.

“As part of the refinancing scheme approved by the lenders, the door-to-door tenure of RDEL’s term-loans stands extended to 18 years,” the company said in a statement.

The consortium of lenders, led by IDBI, had agreed to the exit plan of RDEL with a longer maturity period for loans worth about Rs 6,800 crore.

Pursuant to the refinancing scheme, RDEL’s existing debt of about Rs 650 crore will also be converted into equity shares at a price of Rs 59.35 per equity share, it said.

Shareholders of RDEL by an overwhelming majority of 100% had already approved the issue of equity shares to lenders by conversion of debt, at the extraordinary general meeting held on March 20, 2017.

“In line with the RBI approval, RInfra through its subsidiary has also increased its shareholding in RDEL to nearly 31 per cent,” the company said.

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