Galadari to convert Rs 6 b debt to equity
Galadari Hotels (Lanka) PLC expects to restructure its balance sheet
to reap the advantages in the booming tourism industry, a CSE filing
said yesterday.
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The Galadari Hotel |
The Board of Directors has approved that such restructure be effected
by way of a conversion to equity of the debt due and owing by the
company to the National Insurance Trust Fund (NITF), Department of
Public Finance (Ministry of Finance and Planning) and to Galadari
Brothers Company (LLC).
Under this total debt to be converted to equity as at March 31, 2011
will be over Rs 6 billion (principal sum and accrued interest).
The conversion will be effected by a way of private placement of
shares and subject to, the company obtaining relevant regulatory
approval and also a valuation of the company’s share for purposes of
determining the conversion price (and consequently the number of shares
that will be issued in pursuance thereof to the said NITF and Galadari
Brothers Company (LLC) of Dubai).
The proposed conversion of the stated debt to equity is also subject
to the CSE approving and the company obtaining shareholders approval. IH |
