W S Industries India Ltd proposes to sell 13.71 acres land for not less than Rs. 264 crores

The Board of Directors of W S Industries India Ltd have approved the selling and/or transferring and/or disposing off or otherwise dealing with the immovable property / undertaking comprising an extent of 13.71 acres of land forming part of Door No. 108, Mount Poonamallee Road, Porur, Chennai - 600 116, at Porur Village, Maduravoyal Taluk, Thiruvallur District along with superstructures thereon, if any, and comprised in the following survey numbers (collectively referred to as 'Immovable Property'), either as a single land parcel or more than one land parcel in one or amore tranches with clear and marketable title to one or more wholly owned subsidiaries of the company including the existing wholly owned subsidiary(ies) or which may be acquired or incorporated in the future by the Company) whose accounts have been consolidated with the Company and placed before the shareholders for approval, for a consideration not less than INR 264,00,00,000 (Rupees Two Hundred and Sixty Four Crores only) (for the full area and where the total extent of 13.71 acres reduces for any reason, the consideration will also reduce appropriately), to be discharged by such wholly owned subsidiary(ies) in any manner determined by the Board including by paying monetary consideration (in full or in instalments) and on such other terms and canditions as the Board may in its absolute discretion deem fit.

The Board of Directors of the company had earlier in August 2021 discussed the execution of the Settlement Agreements and other related documents with Edelweiss Asset Reconstruction Company Limited, Allium Finance Private Limited and IDBI Trusteeship Services Limited (acting in its capacity as trustee for and on behalf of the debenture holders of the Company) (jointly "Edelweiss Group") for the settlement of all outstanding dues of the Edelweiss Group (other than the debt allocated to the Vizag Plant of Rs.47.50 Crores) for Rs.95 Crores., over a specified period of time in tranches and for taking steps towards resolution of the Vizag Plant and debt allotted to the same.

The board also approved execution and availing of a temporary / bridge loan facility to part - finance the above.

The outstanding dues claimed by the secured lenders as on 30th July 2021 was:

• Rs. 568.04 cr., from Edelweiss Asset Reconstruction Company Limited (in its capacity as Trustee of EARC SAF 1 Trust, EARC Trust SC 168, EARC Trust SC 209),
• Rs. 124.75 cr., from IDBI Trusteeship Service Limited (as a debenture trustee on behalf of debenture holders) and
• Rs. 201.41 cr., from Allium Finance Private Limited.

The claim amounts include interest up to the said period and other charges as provided for under the respective financing documents entered into by the company.

Source : Equity Bulls

Keywords

WSIndustries LandSale OTS DebtSettlement