The board of construction and engineering major Gammon India (GIL) intends to amalgamate its 100% power generating subsidiary Pravara Renewable Energy with itself.
PREL is in the process of making a petition to the Bombay High Court for approval of the amalgamation, GIL stated in a release today.
PREL is in the process of implementing a 30MW co-generation power project at Pravaranagar in Ahmednagar district of Maharashtra.
"The amalgamation process does not involve any petition or application by the company to the Bombay High Court or any other court or tribunal, as PREL is a 100% subsidiary of the company. The amalgamation process also does not require any approval of the creditors or the members of the company. The amalgamation also does not involve issue of new equity shares or listing of equity shares", the release further stated.
Last week the company stated that it is in dialogue with its lenders for a debt recast plan through the corporate debt restructuring plan. Its total long-term rated facilities are over Rs 10,000 crore.
The firm posted a net loss of Rs 261.60 crore in the third quarter ended December 2012 on net sales/income of Rs 1,216.47 crore. Gammon's prominent lenders include Canara Bank, Allahabad Bank, ICICI Bank.
The stock of Gammon India was trading 1.72% lower on the Bombay Stock Exchange at 10.47am, at Rs 25.70 as against its previous day's close.
