Bharat Gears Ltd withdraws proposal of One-time Restructuring

Bharat Gears Ltd had earlier announced that it had applied for restructuring of its term loans availed from KKR India Financial services Limited (KKR) under Reserve Bank of India (RBI) guidelines issued on August 06, 2020 'Resolution Framework for Covid -19 - related Stress' (OTR), on September 01, 2020. Majority of lenders at their meeting held on 31st December, 2020 have agreed to invoke the restructuring plan (OTR).

Simultaneously, the company had also applied for additional loan facility under Emergency Credit Line Guarantee Scheme (ECLGS 2.0) announced by Government of India under Atamnirbhar 3.0 package. Under the scheme, the Company is eligible for additional finance from the existing lenders equivalent to 20% of the outstanding existing facilities as on February 29, 2020. Company's request has been considered favourably by the lenders.

As per company's assessment, in light of the aforesaid sanctioned facilities as well as improved business scenario, restructuring of debt is no longer required. Hence, in the recent joint meeting of the Company's Lenders on January 29, 2021, it was agreed that One-Time restructuring need not to be pursued and the option has been dropped.

Shares of BHARAT GEARS LTD. was last trading in BSE at Rs.74 as compared to the previous close of Rs. 71.65. The total number of shares traded during the day was 3526 in over 68 trades.

The stock hit an intraday high of Rs. 74 and intraday low of 71.6. The net turnover during the day was Rs. 258842.

Source : Equity Bulls

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