3i Infotech has rallied 11% to Rs 18.35 after IT consulting and software maker said that corporate debt restructuring (CDR) group approved the proposal to restructure the company’s debt.
“The group has cleared a plan to convert 15% of its total secured debt and 20% of unsecured debt into equity, or compulsorily convertible preference shares. It will also get a two-year moratorium, from last Oct. 1, on the repayment of the rest of the loans, and another 10 years to clear the debt," 3i Infotech said in a filing to the stock exchanges.
The group has also allowed Rs 75 crore in additional term loans to the company, it added. The company has also received approval from the Reserve Bank of India to exchange its existing foreign-currency convertible bonds with new ones, the statement said.
A combined 3.27 million shares have already changed hands on the counter in morning deals, as against an average of less than one million shares that were traded daily in past two weeks on both the exchanges.