Stocks

Electrotherm India enters into settlement with IFC

| Updated on July 19, 2018 Published on July 19, 2018

Electrotherm India has entered into a settlement with International Finance Corporation for its outstanding secured loan of external commercial borrowings and unsecured loan foreign currency convertible bonds. There was a default in the repayment of the ECB and the FCCB since June 2011 and June 2012, respectively. The company had availed a $15-million ECB secured by way of mortgage and hypothecation on first pari passu basis, and $10-million unsecured FCCB in May 2007 from IFC, Washington.

After repayment of the first two instalments of $1 million towards the ECB in 2010, there was a default in repayment from June 2011, as well as default in repayment of six instalments of the entire FCCBs from June 2012.

Now, Electrotherm has entered into an agreement with IFC for repayment of ECB for $3.512 million as against principal outstanding amount of $13 million, and $2.696 million for FCCBs against principal outstanding amount of $10 million, payable in six instalments up to September 30, 2019.

The principal outstanding amount of ECB and FCCB as on June 2011 as per the books of accounts of the company was ₹157.76 crore. Shares of Electrotherm India closed 0.3 per cent higher at ₹144 on the BSE

Published on July 19, 2018
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