Corporate Debt Restructuring clears Venus Remedies debt recast proposal

NEW DELHI: Drug firm Venus Remedies today said the Corporate Debt Restructuring (CDR) Cell has approved its proposal, under which its repayments of the principal amount will begin only from April 2016.

The implementation process of the debt restructuring programme is "on the way" now, it said.

"In accordance with the same, inter alia, the moratorium period of repayments of the principal borrowings has been extended to two years, with effect from April, 2014," Venus Remedies said in a filing to BSE.

The lenders have also sanctioned financial assistance towards repayment commitments of foreign currency convertible bonds (FCCBs) of the company, due in February 2015, it added.

"With this, the company has concluded its financial restructuring. The implementation process of CDR is on the way," Venus Remedies said.

The CDR Cell, is the third tier of the CDR mechanism in India. It is mandated to assist the CDR Standing Forum and the CDR Empowered Group (EG) in all their functions. All references for corporate debt restructuring by lenders/ borrowers are made to the CDR Cell.

Venus Remedies scrip closed at Rs 182.25, up 3.64 per cent, on the BSE.