Lenders of Jyoti Structures are now planning to convert their debts into equity or in other words, through strategic debt restructuring (SDR).
The Amin Group submitted its offer to acquire Jyoti Structures recently. The bidder for the debt-ridden company, it has emerged, has not only worked for the company, but is also associated with a Dubai-based accounting firm that audits Jyoti’s UAE affiliate.
Responding to a detailed questionnaire about its relations with Amin Group and its promoters, Jyoti Structures admitted that Mr. Amin’s earlier alliance with the firm.
If lenders agree to the Amin group’s proposition that it may mean taking a share of approx. Rs. 3,000-3,500 crore.
A banker in the know about the developments said that though the investor has shown interest in the company, he has also demanded that they overlook the sizable part of the dues along with pursuing an extra working capital facility as a part of the re-formed package.
A senior SBI executive said, “Lenders will take a call on how much haircut banks will have to take. Either ways, we will have to take a call to accept or reject the offer.” SBI turns out to be the chief lender.
According to the Religare report, under the base case scenario, the buyer may pay for EBIDTA equivalent to the ailing company’s current order book, suggesting that the company would continue to snag a similar amount of orders under the new owner.
At a later point, the Amin Group has also confirmed to bring in a financial investor to the company.
Banks to come together to decide upon the SDR of Jyoti Structures
