The debt-ridden Morepen Laboratories has got a fresh lease of life. Standard Chartered Private Equity (SCPE) has picked up 10% equity in Morepen through an issue of fresh shares. The Delhi-based mid-sized pharma company is now ready to repay around Rs 103 crore debt to banks and financial institutions as part-settlement under the corporate debt restructuring (CDR) scheme.
Meanwhile, lenders have set a deadline of June 30 to conclude the deal. “If the deal is not concluded this month, we will pull out the CDR support,” said one of the lenders, adding that the CDR package is under negotiation for almost a year.
Sources close to the development said the company has been negotiating with its lenders to restructure debt for almost seven years. The debt restructuring programme was delayed partly due to difference among its 31 lenders. Sources said the promoters and SCPE would infuse Rs 100 crore each. Following this, promoters’ stake will increase from 33% to nearly 50%, while SCPE will hold 10% equity. The lenders, who will convert their debt into equity, will hold another 12% and the balance will be with the public.
Read more in The Economic Times article.
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