Maamba Collieries Limited, Zambia (MCL), Subsidiary of Nava limited, has leveraged upon the improved operational cash flows and receipts against the Arbitral Award to discharge completely the overdue loan instalments aside from meeting regular debt service from March 2023.
MCL has thus reduced its overall liabilities from USD 483 Million [INR 3,999 Crs] as at 1st December 2022 by USD 277 Million ( INR 2,296 Crs) to remain at USD 206 Million [INR 1,707 Crs] as on date, which is a significant turnaround in its financial position.
Shareholders are aware that a Consent Award for US$ 518 Million was issued by the Arbitral Tribunal at London in December 2022, in the Arbitration initiated by MCL against Zambia Electricity Supply Corporation Limited (ZESCO), for recovery of outstanding receivables.
ZESCO has been effecting payments against the award, adhering to its payment plan since December 2022. In this pursuit ZESCO has effected payment of USD 60 Million now with settlements aggregating to USD 181 Million as on date against the Award.
MCL has also been receiving payments in full for all energy sales from May 2022 resulting in incremental cash flows including that from coal sales.
With this turnaround and the loans having become standard, MCL proposes to engage with its Lenders the way forward including that for distributions to Sponsors.
Shares of Nava Limited was last trading in BSE at Rs. 246.45 as compared to the previous close of Rs. 239.65. The total number of shares traded during the day was 28535 in over 1219 trades.
The stock hit an intraday high of Rs. 252.95 and intraday low of 241.25. The net turnover during the day was Rs. 7056035.00.