The Hindu Business Line : Talk of debt plans buoys Sterling Holiday Resorts

Sterling Holiday Resorts is maintaining a steady price appreciation in the hope that this fiscal the debt-beleaguered company would finally be out of the woods. According to market grapevine, its GDR plan has been postponed for the time being, but it has firmed up alternative plans to get rid of residual secured and unsecured debts of around Rs 30 crore.

Sale of two plots of surplus land was expected to see the company through the debt trap. The net asset value of the Sterling’s land bank alone is understood to be many times over the current market capitalisation.

While a one-time-settlement with banks has been worked out, the company has also chalked out negotiated settlement with its unsecured creditors. The calculation of gratuity to the employees on an actuarial basis has also been made to ascertain actual liability. On April 1, the company’s board was restructured. Though sources close to the management confirmed the moves, several attempts by Business Line to get an official comment did not succeed.

The stock on Monday finished at Rs 36.35 on the BSE. In the last one month, the stock has gained 30 per cent. However, it came off from the recent high of Rs 97, attained on January 4, after the market sentiment tanked and the primary market conditions deteriorated. In February, the company had planned issue of 3.98 crore GDRs after announcing issue of 32.28 lakh warrants of Rs 10 each at Rs 73 each on preferential basis in January.

The warrants issue has also been put off temporarily. The company has a total of 12 existing properties.

— Jayanta Mallick

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