Sri Lanka’s Hela Apparel Holdings says bankers have agreed to restructure debt provided key shareholders invest 682 million and any other investors put in 3-4.4 billion rupees.
The company said it is in discussions with investors to secure equity investments in the Hela Group.
“The Company expects that the discussions will result in a favourable outcome, thereby improving the liquidity position of the Hela Group.”
Once the terms of investment are agreed on with the investors, the company will provide a further update to the market and seek shareholder approval through an extraordinary general meeting, it said.
All banks that the Hela Group has been carrying out discussions with on restructuring debt owed to them have agreed in principle to the restructure proposal that includes concessionary interest rates and deferment of repayment, subject to conditions:
i) the existing major shareholders investing a minimum of 682 million rupees (the mode of such investment will be notified in due course), and
ii) sourcing new investments from strategic investors amounting to approximately 3 to 4.4 billion rupees.
Source: Economy Next