Birla Tyres Limited board approves draft scheme of arrangement

The Board of directors of Birla Tyres Limited met and has in-principle approved a draft scheme of arrangement ('the Scheme') for internal reconstruction of the Company seeking to restructure its debt, requiring the Company to segregate and demerge its yet to operate Passenger Car Radial Tyre plant ("PCR") into a newly formed company together with major part of its existing debt to its lenders along with charge in proportion. The remaining assets and properties of the Company will continue to operate the Bias Tyre Plant and rejuvenate the same through infusion of fresh funds. The Scheme once operative will open up avenues to reduce debt through monetization of PCR and generate revenue from the running plant.

The Board further authorized its "Restructuring Committee" to take all steps necessary including engaging of experts to make the Scheme tax efficient and law compliant, take the assent / approval of the concerned stakeholders, with or without modification(s), and to file the Scheme as finalized with the specified authorities and do such acts, deeds and things as necessary to give effect thereto.

Shares of Birla Tyres Limited was last trading in BSE at Rs. 23.55 as compared to the previous close of Rs. 24.35. The total number of shares traded during the day was 79467 in over 999 trades.

The stock hit an intraday high of Rs. 24.35 and intraday low of 23.25. The net turnover during the day was Rs. 1881834.00.

Source : Equity Bulls

Keywords

BirlaTyres INE0AEJ01013 Restructuring Demerger DebtRestructuring