Morepen Laboratories Ltd., announced today that it has issued fresh capital of Rs.103 Crores to banks and financial institutions as part settlement under the Corporate Debt Restructuring Scheme (CDR) commencing the implementation of the sanctioned package. The cash component of settlement will be paid off within a month’s time.
 
The Company had a total debt of Rs.757 crores out of which lenders for Rs.574 Crores have opted for One Time Settlement (OTS) between 15%-25% of their principal outstanding. Lenders for Rs.161 crores have opted for restructuring of the outstanding debt wherein Rs.72 crores will be serviceable @ 8.25% per annum repayable in 7 years and Rs.64 crores will be zero coupon instrument payable in the 9th & 10th year.

As part of the settlement, debt worth Rs.103 crores has been converted into Equity and Optionally Convertible Preference Shares (OCPS). The Company has allotted 75.17 lacs shares @Rs.20/- each amounting Rs.15.03 crores. The Company has also allotted OCPS amounting to Rs.88.03 crores. The OCPS carrying a coupon rate of 0.01% would be redeemed or converted into equity shares at SEBI determined price at the end of seven years.

The issuance of equity has resulted in an increase by 3.43% in the Issued equity share Capital.

The Company proposes to settle the cash component of Rs. 98.5 crores as per the CDR OTS settlement within one month. The Company has already tied up necessary funding with international investors.

“This settlement with the banks was a major milestone on the revival path of the company. The company would be making arrangement for settlement with Fixed Deposit holders after this process is over”. Sh. Sushil Suri, CMD – Morepen Laboratories Ltd. said in a statement today.