Alok Industries surges as lenders mull debt restructuring
In January, the company had informed the stock exchanges that the lenders had invoked SDR in the company, with the reference date being November 27, 2015.
By ET Online |
NEW DELHI: Shares of Alok Industries ended 1.78 per cent higher on Monday amid reports that a consortium of lender led by SBI is considering restructuring of its debt under the scheme for sustainable structuring of stressed assets (S4A).
The company has over Rs 18,000 crore debt on its balance sheet, which it owes to a consortium of 32 lenders. Following the reports, the stock jumped 6.95 per cent to hit a high of Rs 4.46 on BSE.
"In the last meeting of the joint lenders' forum ( JLF), which took place after the failure of the SDR, there was a discussion that S4A can be implemented at Alok Industries. A decision on this will be taken soon," a banker told PTI, adding that since the city-based company has good cash flow, S4A is possible.
In January, the company had informed the stock exchanges that the lenders had invoked SDR in the company, with the reference date being November 27, 2015.
Recently, RBI allowed banks to take equity in debt-laden firms, permitting them to split total loans of struggling companies into sustainable and unsustainable categories based on cash flows from various projects.
The scrip is down 37 per cent in last 1 year and 83 per cent in last five years.
The company has over Rs 18,000 crore debt on its balance sheet, which it owes to a consortium of 32 lenders. Following the reports, the stock jumped 6.95 per cent to hit a high of Rs 4.46 on BSE.
"In the last meeting of the joint lenders' forum ( JLF), which took place after the failure of the SDR, there was a discussion that S4A can be implemented at Alok Industries. A decision on this will be taken soon," a banker told PTI, adding that since the city-based company has good cash flow, S4A is possible.
In January, the company had informed the stock exchanges that the lenders had invoked SDR in the company, with the reference date being November 27, 2015.
Recently, RBI allowed banks to take equity in debt-laden firms, permitting them to split total loans of struggling companies into sustainable and unsustainable categories based on cash flows from various projects.
The scrip is down 37 per cent in last 1 year and 83 per cent in last five years.
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