Electrotherm (India) has entered an agreement with IFC to settle its outstanding secured loan of External Commercial Borrowing (ECB) and unsecured loan of Foreign Currency Convertible Bonds (FCCB).
"The company has entered into settlement agreement with International Finance Corporation (IFC) for repayment of ECB for settlement amount of USD 3.512 million (about 27 per cent ) against principal outstanding amount of USD 13 million," Electrotherm said in a BSE filing.
Besides, the agreement is for repayment of FCCB for settlement amount of USD 2.696 million (about 27 per cent ) against principal outstanding amount of USD 10 million payable in six installments up to September 30, 2019, it said.
Electrotherm said there was default in repayment of ECB and FCCB since June, 2011 and June, 2012, respectively.
The company had availed USD 15 million ECB secured by way of mortgage and hypothecation on first pari passu basis and USD 10 million unsecured FCCB in May, 2007 from IFC, it said.
"After the repayment of first two installments of USD 1 million towards ECB in 2010, there was default in repayment of ECB from June, 2011 and default in repayment of six installments of entire FCCB from June, 2012," the filing said.
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The principal outstanding amount of ECB and FCCB as on June 2011 is Rs 157.76 crore.
As per the agreement, on repayment of the entire settlement amount, IFC shall release the charge on the assets of the company and issue no due certificate, it added.