Renuka Sugars up 6% as creditors okay debt recast plan of arm

Shares of Renuka Sugars surged over 6 per cent today after the company said creditors have approved the debt restructuring plan of its Brazilian subsidiary Renuka do Brasil (RdB).
The scrip gained 5.63 per cent to settle at Rs 16.90 on BSE. During the day, it soared 8.43 per cent to Rs 17.35.
On NSE, it jumped 6.26 per cent to end at Rs 16.95.
Renuka Sugars today said the creditors have approved the debt restructuring plan of its Brazilian subsidiary Renuka do Brasil (RdB), which will have to sell one plant for settlement of dues.
At present, RdB has liabilities, including bank debt of about Rs 4,700 crore, and the same would get reduced by about Rs 3,300 crore.

In a filing to BSE, the company informed "under the Judicial Protection Law..., the assembly of creditors of Renuka do Brasil S/A (RdB) has approved the reorganisation plan". RdB had presented the plan on August 26.
Under the debt restructuring plan, the banks and most creditors of RdB (except employees, suppliers of sugarcane and other essentials and small and medium enterprises), are obliged to settle their debt on receiving 30 per cent of the notified value of debt plus interest from the date of plan approval until the date of payment, it added.
Renuka Sugars holds 59.4 per cent stake in RdB.