Millennium Beer Industries Ltd has announced that with regard to the Scheme of Rehabilitation filed by the Company with Board for Industrial and Financial Reconstruction (BIFR), the Hon'ble BIFR has, vide its order dated January 18, 2008, has sanctioned the Rehabilitation Scheme (the Scheme) proposed by the Company.
The Scheme sanctioned by the Hon'ble BIFR, inter-alia, provides for the following:
The existing Equity Share Capital of Rs 5475.55 lacs will be reduced by 90% i.e. the nominal and paid up value of one share of Rs 10 will be Re 1.
Issue of Non-Convertible Cumulative Redeemable Preference Shares of Rs 100 each:
Issue of Non-Convertible Cumulative Redeemable Preference Shares (NCCRPS) of Rs 100 each aggregating to Rs 185 crore to Millennium Alcobev Pvt Ltd (MAPL), the Promoter Company and United Millennium Breweries Ltd, a wholly owned subsidiary of MAPL, for which the Company has already received the share application money.
The NCCRPS shall be redeemed in 8 equal installments from the end of financial year 2010-11 and shall carry dividend @ 1% per annum till redemption.
Restructuring of Net Worth:
The available reserves (including revaluation reserves), securities premium, waiver of principal and interest and reduction in share capital will be utilized to adjust and reduce the balance of accumulated losses of the Company.
Acquisition of 6115351 Equity Shares of the Company by the Promoters from ESOP Trust:
Promoters of the Company i.e., Millennium Alcobev Pvt Ltd, shall acquire 6115351 Equity Shares of the Company representing 11.16% of the Equity Share Capital of the Company, held by Inertia Employees Stock Option Trust (ESOP) in the Company.
The Promoters are exempted from applicability of Guidelines and Regulations of Securities and Exchange Board of India, as may be applicable from such acquisition.