Diamond Cables Ltd annoucnes completion of debt restructuring, networth to increase by Rs.86.6 Crores

Diamond Cables Ltd has announced the successful completion of a Major debt restructuring Exercise with its Secured Lenders.

The Company has concluded a One time settlement of dues with 100% of its secured lenders aggregating Rs 131.30 crores for a total consideration of Rs 45 crores, pro-rata to their respective outstanding.

As a result of this one Time settlement of dues, the companies Net worth would increase by Rs 86.6 crores, which would translate into increase in book value of Shares by Rs 64 per Share.

The above said settlement was done with a cutoff date of December 31, 2005, therefore the Interest accrued & accounted for during the period Jan 01, 2006 till date shall also be written back to the companies books as One Time gain.

The company is confident that with the above said financial restructuring the companies Balance Sheet and Debt Shall become sustainable and lay a foundation for growth in the companies Sales.

Source : Equity Bulls

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