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Gujarat NRE Coke, which had slipped into liquidation after it failed to find any takers under the Insolvency and Bankruptcy Code (IBC), has come up with a scheme to partially settle the claims of its creditors and foreign currency bond holders.
According to Arun Kumar Jagatramka, Promoter, the scheme will be put to vote at a joint meeting of creditors, FCCB holders and shareholders on July 16 and has to receive the sanction of the NCLT (National Company Law Tribunal) for it to be implemented.
The Kolkata Bench of NCLT, had earlier, allowed the company to come up with a scheme under Section 230 of the Company Act 2013 to revive the company with the consent of all stakeholders.
The admitted claims of secured and unsecured creditors to the company stands at ₹3,501 crore and ₹1,502 crore, respectively.
Under the scheme, the company proposes to repay ₹500 crore worth term loans to secured creditors over the next 10 years at 8.1 per cent. It also plans to issue ₹40 crore worth of shares of face value of ₹1 each and compulsory redeemable preference shares (CRPS) of ₹10,000 face value aggregating to ₹2,961 crore to be redeemed after 20 years at one go.
Post the implementation of the scheme, lenders shareholding in the company will increase to 38.83 per cent (32.39 per cent), while promoters’ holding will decrease to 17.52 per cent (25.61 per cent).
The unsecured creditors, who will have to take a 50 per cent haircut, will be issued 22 crore equity shares of face value of ₹1 each. The company will also issue 7 lakh CRPS of ₹10,000 face value aggregating to ₹728 crore to be redeemed after 20 years.
The claims of FCCB holders will be reduced by 90 per cent and they will be issued 13.99 crore equity shares of face value of ₹1 each.
The company will also restructure the equity share capital by reducing the paid-up share capital by 90 per cent from ₹1657.03 crore to ₹165.70 crore through reduction in the face value from ₹10 a share to ₹1 a share.
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