Jaiprakash Power Ventures today said its board has approved the proposal to alter its memorandum of association to increase authorised share capital of the company to Rs 20,050 crore from Rs 10,050 crore, mainly to convert debt of lender into equity.
The board has approved alteration of clause V of the memorandum of association of the company to increase the authorised share capital of the company from Rs 10,050 crore to Rs 20,050 crore, a BSE filing said.
According to the statement, the board has also approved in its meeting held today the proposal to convert part of the outstanding loans of banks/financial institutions (lenders) into cumulative compulsory convertible preference shares (CCPs) or such other instrument/security as may be mutually agreed between the lenders and the company up to an amount of Rs 4,000 crore in one or more tranches under the resolution plan.
The lenders to be issued CCPs are ICICI Bank, IDBI Bank, Punjab National Bank, Central Bank of India, State Bank of India, United Bank of India, Canara Bank, Oriental Bank of Commerce, UCO Bank Edelweiss Asset Reconstruction Company, Life Insurance Corporation, Syndicate Bank, Bank of Baroda, Corporation Bank, Indian Overseas Bank, Allahabad Bank, Union Bank of India, J&K Bank Ltd, Bank of India, Dena Bank, Andhra Bank and Bank of Maharashtra.
The board has approved the proposal to issue 35.20 crore equity shares of face value of Rs 10 each by the company on preferential basis to unsecured creditors of the company.
The board also approved the proposal to amendment of the existing terms and conditions for the outstanding amount of USD 101.42 million out of the USD 200 million 5 per cent foreign currency convertible bonds (FCCBs) including downward resetting the conversion price of FCCBs at Rs 12 per equity share.
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