Financial Daily from THE HINDU group of publications
Thursday, Mar 10, 2005
Financial Daily from THE HINDU group of publications Thursday, Mar 10, 2005 |
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Corporate
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Sick Units Vybra Auto to convert unsecured loans into equity Our Bureau
Hyderabad , March 9 THE Board for Industrial and Financial Reconstruction (BIFR) has directed the ailing Vybra Automet Ltd to convert unsecured loans into equity within three years to make its net worth positive. These unsecured loans were given by the promoters and others over a period to strengthen the liquidity of the company. Accordingly, the Vybra Automet board now proposes to convert unsecured loans of Rs 1.83 crore into equity shares of Rs 10 each at par in compliance with the rehabilitation package sanctioned by the BIFR. The board proposes to issue 18.35 lakh equity shares of Rs 10 each for cash at par on a preferential allotment basis to the promoters and others who extended unsecured loans earlier. "The objective of proposed conversion of existing unsecured loans into equity at par, is to strengthen the equity base and in strict adherence to the directives of the BIFR. The proposed conversion will also make the net worth positive," the company informed the shareholders through an EGM notice while seeking their consent for the proposal.
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