Jindal Stainless today said the Corporate Debt Restructuring (CDR) Empowered Group has approved rescheduling of payments of over Rs 9,000 crore debt on August 24.
The company, which is already under the CDR programme, was hit hard by 33% increase in its interest costs in last financial year and had registered a stand-alone net loss of Rs 103.90 crore in FY12.
"The rework package of the company under the CDR mechanism has been approved by the CDR Empowered Group on August 24, 2012 and the same has been communicated to the company by CDR Cell vide its letter dated September 18, 2012," JSL said in a filing to the BSE.
The approval was needed to maintain cash flow for its operations, particularly till its new 8 lakh tonne Odisha capacity begins production at optimum level, a senior official of Jindal Stainless Ltd (JSL) said.
He added that company's performance has been affected in recent times largely due to subdued demand, weakening of rupee and cheap imports of stainless steel from overseas market.
However, JSL is expecting to make profits after its new 8 lakh tonnes capacity at Odisha starts running at optimum levels by June, 2013, the official said.
In 2011-12, its debt-equity ratio increased to 5.17 from 4.04 in FY'11, its financial results for the last fiscal showed.
Besides, the company had a liquid cash of Rs 164 crore as on March, 2012 to run its operations.
JSL had commissioned 8 lakh tonne per annum new plant at Odisha's Jajpur last year. Currently, the plant is producing at about 60-65% of its capacity.
The company, at present, has a total production capacity of about 1.8 million tonnes (MT) and has plans to increase it further to 2.5 MT in a couple of years.
To run its operations, the company requires about 8-9 lakh tonnes of chrome ore and 1.2 million tonnes of coal per year.
Meanwhile, in a separate filing to the BSE, JSL said that some of its bond holders have converted 200 foreign currency convertible bonds (FCCBs) of $5,000 each into 3,64,972 equity shares of Rs 2 each.
Post conversion, company's paid up capital would increase from Rs 38,03,25,150 to Rs 38,10,55,094 divided into 19,05,27,547 equity shares of Rs 2 each, it added.
Shares of the company fell 3.03% today to close at Rs 68.80 apiece on the BSE.
