Lenders may convert JSL’s Rs 1000cr debt into equity: sources
JSL sought to extend the repayment schedule but lenders in a meeting last week decided to convert the debt into equity, banking sources said.
By Nisha Poddar, 
| Updated:
| Updated: Lenders to JSL, an O.P. Jindal Group company, may convert Rs 1000 crore of their debt in the company into equity, banking sources with direct involvement said.
JSL sought to extend the repayment schedule from the lenders, but the banks were not too convinced, and in a meeting last week decided to convert debt into equity.
The Rs 1400 crore market cap company is under Corporate Debt Restructuring with a debt burden of Rs 9000 crore on its books. It suffered a loss of Rs 180 crore in FY12 after a 33 percent increase in interest costs to Rs 570 crore for the full financial year.
SBI, PNB, BoI are among the key lenders to JSL.
An official from Jindal Stainless said, “We are not aware of any such decision by the lenders.”
The JSL stock closed at Rs 71.75, down 0.21 percent, on the NSE.
JSL sought to extend the repayment schedule from the lenders, but the banks were not too convinced, and in a meeting last week decided to convert debt into equity.
The Rs 1400 crore market cap company is under Corporate Debt Restructuring with a debt burden of Rs 9000 crore on its books. It suffered a loss of Rs 180 crore in FY12 after a 33 percent increase in interest costs to Rs 570 crore for the full financial year.
SBI, PNB, BoI are among the key lenders to JSL.
An official from Jindal Stainless said, “We are not aware of any such decision by the lenders.”
The JSL stock closed at Rs 71.75, down 0.21 percent, on the NSE.
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