J K Paper EGM approves reduction of share capital

J K Paper Ltd has announced that the members at the Extra Ordinary General Meeting (EGM) of the Company held on March 17, 2007, have accorded, the reduction of share capital of the Company by way of conversion, with effect from July 01, 2006, of the aggregate paid-up value of 52,00,000, 3.75% fully paid up Cumulative Redeemable Preference Shares of Rs 100 each ("CRPS" or "3.75% CRPS") of the Company amounting to Rs 52,00,00,000 into an unsecured loan of Rs 52,00,00,000 ("Unsecured Loan") in favour of the holder(s) of the said CRPS on the undermentioned terms and conditions:

(i) The Unsecured Loan of Rs 52,00,00,000 shall carry simple interest at the rate of 3.75% per annum payable quarterly on March 31, June 30, September 30 and December 31.

(ii) The Unsecured Loan of Rs 52,00,00,000 shall be repayable in three installments as follows:

(a) Rs 15,60,00,000 on November 29, 2017.

(b) Rs 15,60,00,000 on November 29, 2018.

(c) Rs 20,80,00,000 on November 29, 2019.

(iii) Consequent to the reduction of capital in the manner proposed hereinbefore, the paid up share capital of Rs 52,00,00,000 representing 52,00,000 CRPS shall stand cancelled and become NIL on and from July 01, 2006, being the effective date of conversion of all the CRPS into an unsecured loan of Rs 52,00,00,000, subject to necessary provisions & approvals.

Source : Equity Bulls

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