A loan is considered as sustainable when a company is able to service it from its cash flow. The debt restructuring was done under the Reserve Bank of India’s (RBI) Scheme for Sustainable Structuring of Stressed Assets, or S4A. The promoters of Bajaj Hindusthan Sugar will cut their stakes to 15.43% from 26.02% by selling a part of their shareholdings to the lenders. Of the company’s unsustainable debt, Rs3,483 crore will be converted into optionally convertible debentures, the statement said. Bajaj Hindusthan Sugar is seeking approvals from its shareholders and individual lenders, according to the statement.

Source: Mint December 02, 2017 04:30 UTC