In a major relief to the Ahmedabad-based engineering player, Electrotherm (India) Ltd, the Empowered Group (EG) of the Corporate Debt Restructuring (CDR) cell has approved the debt restructuring package for the entire liabilities of the company.
Electrotherm had approached the CDR cell for the second time requesting a recast of its liabilities worth around Rs 3,200 crore.
The consortium of banks comprising of 17 banks, led by Bank of India, has mandated the company to demerge its business into four independent entities in Steel, Pipe, Engineering and Auto, a company statement informed on Wednesday.
Electrotherm is the leading manufacturer of induction furnace, oxygen converter, ladle furnace, caster, transformer and other metallurgical equipment.