Home / Knowledge / News / Textiles / Surat Textile Draft Rehabilitation Scheme approved
Surat Textile Draft Rehabilitation Scheme approved
05
Feb '08
Surat Textile Mills Ltd has informed that with reference to the hearing held on December 24, 2007, at the Board For Industrial & Financial Reconstruction (BIFR) and the copy of the proceedings / order dated January 22, 2008 received by the Company on January 29, 2008.

The BIFR has approved the Draft Rehabilitation Scheme (DRS) forwarded by Industrial Development Bank of India (IDBI), the Operating Agency (OA).

The Scheme inter-alia provides for the following:
1. One Time Settlement (OTS) of the secured debts of the Company amounting to Rs 7741.50 lakhs by payment of Rs 4083 Lakhs. The secured creditors to waive balance of principal, interest, penal interest and other charges upon repayment of OTS amount.

2. Infusion of additional Working Capital of Rs 367 lakhs by the Promoters.

3. Write down of the existing equity capital of the Company under section 18(2)(f) of Sick Industrial Companies Act, 1985 (SICA) by 90%. Upon such write down the face value and paid up value of equity shares of the Company will be reduced from Rs 10 per equity share to Rs 1 per equity share.

The Company shall issue fresh certificates to all shareholders of the Company of the face value of Rs 1 each credited as fully paid up, for every one equity share of Rs 10 each fully paid up held by them.

4. Total cost of scheme of Rs 4450 lakhs will be met by issue of fresh equity share capital at par on a preferential basis in favour of the promoters / strategic investors for an amount of Rs 1550 lakhs in order to reduce further interest cost. The balance amount of Rs 2900 lakhs is to be provided as interest free soft loans by the promoters.

Surat Textile Mills Ltd

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search