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In order to revive and strengthen the performance of Braithwaite, Burn & Jessop (BBJ) Construction Company Limited, Kolkata the Cabinet Committee on Economic Affairs (CCEA) today gave its approval for its financial restructuring. Accordingly, the Company will be allowed conversion of Government of India loan amounting to Rs.3.88 crore into equity; conversion of interest outstanding on Government of India loan amounting to Rs. 10.00 crore into equity, thus total conversion to equity would be Rs.13.88 crore; and conversion of interest outstanding on Government of India loan amounting to Rs.10.00 crore to Zero Rate Debenture (ZRD).
CCEA has also waived the balance of interest and penal interest accrued and dues on Government of India loan till March 31, 2004 amounting to Rs.30.73 crore. Further no interest would be levied beyond the cut off date of March 31, 2004 till date.
The financial restructuring will clean the balance sheet of the company and make its net worth positive. This will improve the creditworthiness of the company and also enable it to borrow funds from banks/FIs/leasing companies. The funds, which the company will borrow will be utilised for financing its diversification plan and the company will be able to ward off threat to its future survival.
YSR/DS/HS/LV
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