Supertex Industries Updates on negotiations with lenders

Supertex Industries Ltd has announced that after hard bargaining and much negotiations, two of the company’s major secured lenders (more than 80 %) have already agreed to settle their outstanding loans at a level which shall provide a unique opportunity to the Company to bounce back to health and turnaround in the immediate future. The other lenders are following suit and the management feels confident of finalizing with them very soon paving the way for the revival of the Company's fortunes.

The core management committee met on December 19, 2006 to assess the position and explore the possibilities for resources that are necessary to be tapped now for meeting the obligation of payments to the banks. The Company has an option to approach its shareholders for funds. It is also negotiating with a group of strategic investors who are equally keen on seeing the Company out of difficulties and debt free. The promoters have also welcomed a suggestion and accepted the idea of even transferring their personal holdings to some interested groups for generating the requisite funds for introducing into the Company to pay off the loans. They are not averse to the idea as the prime importance at the moment is to grab this opportunity which can change the fortunes of the Company in the future. The promoters are also roping in some other strategic investors who will help the promoters attain this task.

As a result of the settlements the Company would become absolutely debt free and its brought forward losses would he substantially wiped out and it shall become a positive net worth company. It shall also receive numerous advantages under the income tax, sales tax and other laws. The Company was poised for this eventuality and the process reengineering and other internal reforms done by the Company will get considerable support from this development. The management is confident that the destiny of the Company will change considerably in the near future.

Source : Equity Bulls

Keywords