Commodities

Steel Exchange Board to discuss one-time settlement

Our Bureau Hyderabad | Updated on December 14, 2020

Majority of the lenders have considered the OTS scheme as implemented with effect from June 30, 2020

Steel Exchange India Limited has said that a meeting of its Board of Directors is scheduled for December 17, 2020 to discuss the status of debt resolution by way of a one-time settlement (OTS) scheme.

This OTS proposal was made by the company to the consortium of banks led by State Bank of India and to consider the approvals already received and to further suggest steps to be taken with regard to the funding proposal to meet the OTS obligations, said the company’s regulatory filing.

Majority of the lenders have considered the OTS scheme as implemented with effect from June 30, 2020, with the interest on the outstanding OTS amount being applicable from October 1, 2020.

The company’s Board of Directors will also consider and approve the proposal for raising funds for the purpose of OTS with the lenders of the company via issue of equity shares / convertible bonds/ all types of debentures / warrants / any other equity-linked securities, subject to approvals.

Further, the Board will consider and approve conversion of unsecured loans of the promoter and promoter group into equity shares of the company subject to such approvals as may be required.

The company has an integrated steel plant at Sreerampuram, Vizianagaram district, power plant at Kothapeta, East Godavari District, and re-rolling unit at Paravada Mandal, Visakhapatnam.

The company said that the trading window for dealing in its securities shall remain closed from December 14 to December 19, 2020.

Steel Exchange operates across trading, steel melting, rolling wire drawing and HC wire products and galvanized wire division, Pyxis software division and sponge iron division.

The company shares were trading at ₹38.90, up ₹1.90 (5.14 per cent) on the BSE in afternoon trade.

Published on December 14, 2020

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