Looks to realign outstanding debt of the company and its subsidiaries
The board of directors of 3i Infotech on Monday approved proposals of debt realignment scheme for creditors (DRS) and restructuring of the foreign currency convertible bonds (FCCBs).
According to an exchange filing through the DRS it looks to realign the outstanding debt of the company and its subsidiaries from the creditors that are part of Joint Lenders’ Forum (JLF). The proposals that are still to be approved by creditors include waiving of interest up to March 2016, and conversion of about 35% of principal component of the debt to non-convertible redeemable preference shares (NCPs).
It also proposed to convert 40% of principal component of the debt into equity shares of the company with a face value of R10 as well as retention of the balance 25% debt as loan with elongated repayment schedule with revised interest rate.
The Mumbai based company also proposed a restructuring scheme of FCCBs to holders of two sets of convertible bonds due 2017 totaling close to $127.8 million. For this restructuring option the company proposed waiver of accrued and unpaid interest of the existing bonds upto March 2016 and discharge of a portion of the principal amount.
It also proposed conversion of a portion of the principal amount of the existing bonds into equity shares of the company at a revised conversion price and exchanging a portion of the principal amount existing bonds with new FCCBs to be issued for a fixed tenure and interest rate.