SBI plans to identify prospective investor to sale Promoters holding in Rohit Ferro Tech
Rohit Ferro Tech announced that a written request has been received by the Company from State Bank of India (SBI), the leader of lenders Banks vide SBI's Communication dated 22 May 2017 to execute a Deed of Undertaking binding the Company together with the Promoters (including persons belonging to the Promoter Group) to the sale of the entire shareholding of the Promoters in the Company (Promoter Shares) to a prospective Investor to be identified by SBI.The request received from SBI will be considered in Board meeting to be held on Tuesday, 30 May, 2017.
The reason: This is a step taken by SBI pursuant to the various circulars issued by the Reserve Bank of India (RBI) from time to time on restructuring of overdue loan accounts, and is aimed at change in management of the Company outside Strategic Debt Restructuring where the potential investor identified by SBI shall take over control and management of the Company and will service its debts due to the banks.
The impact: Upon identification of the prospective investor, SBI together with consortium members may enter into agreement with prospective Investor to realise their amount of debt as may be agreed between prospective Investor and SBI. The financial impact on the Company is not predictable as the same will be subject to the outcome of the terms under which the prospective Investor agrees to takeover management and control of the Company.
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