Plans to convert Binani Cement debt into equity

Plans to convert Binani Cement debt into equity
09 November 2015

Lenders to India’s Binani Cement are planning to convert a total debt of INR30bn in the company to equity.

The debt-to-equity conversion is being contemplated under the strategic debt restructuring (SDR) guidelines of the Reserve Bank of India (RBI). The consortium of 18 banks led by the Central Bank of India are looking at converting the debt to equity, giving lenders a majority stake. "The banks are contemplating whether they should first try and turn around the company," a banker told India’s Economic Times.

"We are also looking at another option of a buyer taking over the company where the debt of the company could be serviced as per the schedule." Banks had even given an additional term loan of INR3bn to the company as part of reported debt restructuring deal in June.

Published under Cement News

Tagged Under: India Binani Cement Debt equity