Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: due date for vat payment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt
 
 
« General »
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall

IL&FS planning to convert Maytas Infra debt into equity
January, 25th 2010

In a move aimed at shoring up Maytas Infra's networth and perhaps staving off a possible attempt by erstwhile promoter Teja Raju to get a foot into the company again, the company's new owner IL&FS is negotiating with lenders to convert around Rs 600 crore of the company's debt into equity.

As part of the corporate debt restructuring (CDR) rework, IL&FS has already written to IDBI, which heads the Maytas lenders' consortium, seeking conversion of one-third of Maytas' debt of over Rs 18,00 crore into equitythrough preferential allotment, sources said.

The move will not just reduce the company's debt but also enhance networth that had eroded by over 50% in the aftermath of the Satyam scam, they added. However, bringing lenders on the Maytas board could also be a good way to stave off a possible attempt by Teja Raju to try and get a say in the running of the company in future, say analysts.

Though Raju was asked to step down from the company's board by a Company Law Board (CLB) order of August 31, 2009, that handed over Maytas to IL&FS, to whom the Raju family had pledged 37.01% of their stakeholding soon after the company's IPO in October 2007, the Raju family still holds a substantial 23% stake in the company.

"Though this stake is locked till Oct. 2010 as per Sebi's IPO norms, the possibility of the Rajus holding additional equity through hitherto unknown sources cannot be ruled out. Raju could then make an attempt to get back a seat on the board," said an analyst.

Maytas Infra's operations had come to a standstill after Ramalinga Raju's confessions that he fudged Satyam's accounts. Even as banks refused to lend money, it lost several orders including the Rs 12,132 crore Hyderabad Metro Rail project.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions