 |
Chennai: Sterling Holiday Resorts India today informed the stock exchanges that its board of directors will meet on June 4 to consider allotment of equity shares and warrants on preferential basis.
Though the company officials are not available for comment, sources close to the development say it could be to service the company's loans.
Earlier, in February, the company raised around Rs 17 crore by allotting 45.63 lakh equity shares of Rs 10 each at a premium of Rs 25 a share and 30 lakh warrants at a subscription price of Rs 3.50 each convertible after 18 months into equity shares at an exercise price of Rs 35 per warrant to India Horizon Fund (16.9 lakh shares), India Discovery Fund (16.9 lakh shares), Blue Ocean Investment Trust (11.9 lakh shares) and an individual, S. Dhanalakshmi (30 lakh warrants).
This was used to settle some of its loans from banks and financial institutions.
According to the auditors' report filed with the exchanges, the company is also negotiating with certain creditors (both secured and unsecured) for settlement of their dues, including principal and interest. Sterling Holiday Resorts has also entered into agreements with some lenders for one time settlement of dues.
In its remarks to this, the company has said it is in the process of negotiations with some creditors and is hopeful of arriving at some settlement shortly. It is expecting major waivers/concessions against interest and penal interest.
More India business stories | Get the latest Sensex update
For the year ending March 31, 2009, it has reported an increased net loss of Rs 13.37 crore against Rs 90 lakh in the previous year, on a turnover of Rs 30.94 crore and Rs 36.8 crore, respectively. The promoter group has also pledged over 47 per cent (31 lakh shares) of its equity holdings in the company during the year.
