Jyoti Structures seeks shareholder permission to allow lenders convert debt into equity

MUMBAI: Jyoti Structures is seeking shareholder permission to modify debt restructuring agreement with its lenders to let them convert debt into equity, the company said in a regulatory filing on Tuesday.

Jyoti Structures owes Rs. 7,158.30 crore to 24 banks and non-banking financial companies. State Bank of India has the largest exposure of Rs. 1454.41 crore followed by ICICI Bank with Rs. 813.55 crore.

The move is part of a strategic debt restructuring (SDR), a scheme outlined by the Reserve Bank of India earlier this year.

Jyoti Structures said the conversion right reserved as aforesaid may be exercised by the lenders as specified under the financing documents or in accordance with the SDR Scheme.

It added the rate of conversion of the outstanding debt is into fully paid up equity shares of the company shall be at the rate determined by the lenders in accordance with SDR Scheme.

Shares of Jyoti Structures have lost half its value in the last one year. It closed at Rs 17.05 apiece on Wednesday.