Kesoram completes debt rejig, clears bank loan

Kolkata: Manjushree Khaitan-led

Kesoram

Industries on Tuesday finally completed the debt restructuring making itself free from bank debt. Earlier, the company had converted some portion of its debt of lenders to equity.

The company has allotted Rs 459 crore of optionally convertible debentures (OCD) and Rs 1,600 crore of non-convertible debentures (NCB) to Goldman Sachs, Sarvara Investment Fund of Cerberus Capital Management and Edelweiss group along with others.

The CEO of Kesoram, P Radhakrishnan, pointed out that out of the total fund, Rs 250 crore would be utilised as working capital, Rs 1,500 crore will be utilised to completely clear bank debt and rest would be front-loading and interest.

Main lenders of the company were: SBI, Axis Bank, South Indian Bank, ICICI Bank, HDFC Bank, WBIDFC along with others. After the conversion of a portion of debt current lenders would have 10-13% in the company while promoters holding would come down from 53% to 45%.

The existing lenders currently have no equity exposure in the company.

Kesoram has got in-principle approval from its lenders to go ahead with its fund-raising and subsequent debt recast plan on November 25, last year. The company has already pared debt by around Rs 1,000 crore following demerger of its tyre division of the company into a new entity Birla Tyres.


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