<article>Lenders to <a style="color: #000080;" href="http://www.gammonindia.com/" target="_blank">Gammon India Ltd </a>will be converting Rs.245 crore worth of debt to a 60.10% equity stake under strategic debt restructuring (SDR) norms.
In a stock exchange notification on Friday, the engineering firm said a 12-member consortium led by <a style="color: #000080;" href="http://www.icicibank.com/" target="_blank">ICICI Bank Ltd</a> will convert part of its debt to majority equity at Rs.11.89 per share.</article>

Lenders to <a style="color: #000080;" href="http://www.gammonindia.com/" target="_blank">Gammon India Ltd </a>will be converting Rs.245 crore worth of debt to a 60.10% equity stake under strategic debt restructuring (SDR) norms.
In a stock exchange notification on Friday, the engineering firm said a 12-member consortium led by <a style="color: #000080;" href="http://www.icicibank.com/" target="_blank">ICICI Bank Ltd</a> will convert part of its debt to majority equity at Rs.11.89 per share.
On 29 November, Gammon India had informed the stock exchanges that its lenders had informed the firm about a conversion under the SDR norms which were announced by the Reserve Bank of India on 8 June.
Under the norms, banks are allowed to convert their debt into majority equity in a company where they feel the need to change the management.
Project delays caused by issues related to land acquisition and government clearances in recent years have constrained corporate cash flows and made it difficult for borrowers to repay debt. Energy, commodity and infrastructure firms have borne the brunt, leaving lenders with a large pile of non-performing assets.
Gammon India has been restructuring its nearly Rs.15,000 crore of debt through the corporate debt restructuring mechanism since September 2013.
As part of the package, Gammon India’s 19-lender consortium agreed to divide the company into three parts, a banker said on condition of anonymity.
Gammon India’s power transmission and distribution (T&amp;D) business will be treated as one entity; the engineering, procurement and construction (EPC) unit as another; and the third will comprise all residual businesses, Mint <a href="http://www.livemint.com/Companies/JjoO2QIiFyOUZqnQolymAL/Gammon-India-lenders-to-take-control-of-company.html" target="_blank">reported</a> on 23 November.
Of the company’s total debt, T&amp;D accounts for Rs.3,900 crore, EPC for Rs.7,400 crore and the residual units for Rs.3,500 crore.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/gammon-india-lenders-to-take-control-of-company-as-part-of-debt-rejig-20779/" target="_blank">Gammon India lenders to take control of company as part of debt rejig</a>
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Gammon India lenders to take 60% stake under strategic debt restructuring

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