RPG Cables completes financial restructuring

RPG Cables Ltd has announced the completion of its financial restructuring via infusion of Rs 151 crore through a combination of debt and equity by Deutsche Bank AG Hong Kong and the promoters RPG Group.

As per the restructuring package, existing lenders have agreed for a one-time settlement which would result in the reduction of Company's borrowings by over Rs 100 crore. This will also reduce the interest burden by Rs 12 crore annually.

Deutsche Bank AG has been allotted Fully Convertible Debentures aggregating Rs 28 crore which will translate to approx. 14.9% of the Company's equity capital.

In addition, Deutsche Bank AG has provided working capital facilities to the Company to enable the Company grow its business.

Mr. Nikhil Gupta, Managing Director, of the Company said, "Backed by the thrust on the power sector development the Power Cables industry is at present witnessing a strong growth momentum, the completion of financial restructuring would enable RPG Cables to meet the growing demand of its products. RPG Cables is also set to grow by better capacity utilization and improved operational efficiencies."

The Company has shown a strong growth in revenues and order inflows, in FY ‘07. During the first 3 quarters, sales rose by 53% to Rs 152 crore, against Rs 99 crore during the same period last year. With the completion of financial restructuring and a strong demand growth the Company expects to perform well in FY ‘08.

An RPG company, RPG Cables, manufactures a wide range of cables for the Power and Telecommunication sectors., The Company's manufacturing facilities are located at Thane, Silvassa and Mysore.

Source : Equity Bulls

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