Southern Petrochemicals up 9.8% on HC nod for debt waiver

Shares of Southern Petrochemicals surged over 9.8% to Rs16.20 on Monday on rumours that the company has secured a “favourable” scheme of arrangement which will allow the company to retire its debt comfortably.

The Madras High Court had agreed to the scheme of arrangement proposal put forth by the company last week. According to market sources, Southern Petrochemicals has secured a bank loan waiver, which will help the company reduce its debt significantly.

The company, as on March 31, 2012, booked debt worth Rs903 crore on a standalone basis. The market grapevine has it that a Kolkata-based operator has been accumulating shares of Southern Petrochemicals in large numbers over the past two weeks.