PFC acquires 23% in Shree Maheshwar Hydel Power Corp

New Delhi, June 2 () In the wake of loan default worth Rs 700 crore, Power Finance Corp today said it has acquired over 23 per cent stake in Shree Maheshwar Hydel Power Corp by invoking pledged shares and partially converting debt into equity. "Upon invocation of pledged shares and partial conversion of sub debt, the total shareholding of PFC (Power Finance Corporation) in Shree Maheshwar Hydel Power Corporation Ltd (SMHPCL) stands 13,18,46,779 equity shares of Rs 10 each representing 23.32 per cent of paid up equity share capital of SMHPCL," State-run Power Finance Corporation (PFC) said in filing to BSE. PFC is one of the lenders of Shree Maheshwar Hydel Power Corporation Ltd and have given a loan of Rs 700 crore to SMHPCL along with guaranteeing Rs 400 crore to the bond holders of SMHPCL. "SMHPCL has defaulted in repaying the loan to PFC and now PFC is enforcing its legal rights as per the pledge deed dated November 30, 2006....and subordinate loan agreement dated September 29, 2006, by invoking the shares pledged by the promoters of SMHPCL in favour of PFC and by partial converting sub debt loan into equity shares," the filing said. Accordingly PFC had served pledge invocation notice dated May 19, 2015 and conversion notice dated December 18, 2015 and May 27, 2016 on SHMPCL, it said. "In furtherance to above, PFC is in receipt of communication from SHMPCL that its board of directors...has approved transfer of 6,57,46,779 equity shares of Rs 10 each in favour of PFC pursuant to invocation of shares pledged by its promoters in favour of PFC in terms of pledge deed...," it said. Further the board of SMHPCL has also "approved allotment of 6,61,00,000 equity shares of Rs 10 each to PFC consequent upon partial conversion of sub debt loan to SMHPCL to the extent of Rs 66.10 crore", the filing said. SID RAM SOM