Graham Firth to implement Rehabilitation Scheme

Graham Firth Steel Products India Ltd has announced that the Board for Industrial and Financial Reconstruction has passed an Order on May 29, 2007 approving the Scheme of Rehabilitation of the Company as per the Rehabilitation Scheme that was submitted to them by one existing promoters of the Company Mr. Shilpin J Patel.

The principal features of the approved Scheme are as under.-

1. Operational Restructuring: Since Goregaon Unit has been found unviable, it is proposed to consolidate the entire manufacturing operations at Chikalthana Unit at Aurangabad. The manufacturing operations at Goregaon Unit at Mumbai to stand discontinued and plant and machinery of Goregaon Unit to be shifted to Aurangabad as a part of the said consolidation.

2. Corporate Restructuring: With effect from April 01, 2005, the immovable assets of Goregaon Unit at Mumbai (other than plant and machinery which are to be shifted to Chikalthana) would be hived off and vested in a new corporate entity to be named as GFM (India) Infrastructure Ltd. (GFM). After the said vesting, the remaining assets of the Company would remain with the existing legal entity, that is, the Company.

3. Capital Restructuring: The present paid-up equity capital of the Company consists of 13,47,708 shares of Rs 10/- each aggregating to a value of Rs 134.77 lakhs. The restructuring of capital is in two parts as under:

- The paid-up value of the existing equity shares would be reduced by 95%.

- The existing shareholders of the Company would be allotted equity shares of GFM in the ratio of one equity share for every one hundred equity shares of Rs 10/- each, the equity shareholding in GFM immediately on demerger will mirror that in the Company.

4. Debt Restructuring: This is a one-time settlement with all the secured creditors is completed.

Source : Equity Bulls

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