Gammon India to issue Rs 100-crore debentures to promoters

Under the terms agreed for the CDR, the company will get a moratorium of two years on servicing the loan

Construction and engineering major Gammon India today said its Board will consider issue of debentures to the promoter group, which had pumped in Rs 100 crore into the construction firm in 2013 as part of corporate debt restructuring scheme.

"A meeting of the board of directors of the company will be held on April 27 to consider and approve, on a preferential basis, issue of zero coupon unsecured compulsorily convertible debentures to the promoters," Gammon India said in a BSE filing.

Gammon India is under a CDR scheme since July 2013 when its Rs 13,500-crore loan was rescheduled for a 10 year tenure at lower interest rate.

Under the terms agreed for the CDR, Gammon India will get a moratorium of two years on servicing the loan. The interest rate on the loan amount was reduced by 1-2 percentage points to 11-12 per cent.

Shares of the company were trading 7.14 per cent up at Rs 21.75 per scrip during afternoon session on the BSE.