Educomp Solutions has initiated discussions with its lenders to restructure its debt. The company has approached the Corporate Debt Restructuring forum, according to information given to the BSE.
The company has a gross debt of Rs 2,100 crore as on March 31.
An official statement from the company said it has initiated discussions with its lenders to correct the asset liability mismatch on its balance sheet.
In May, Educomp Solutions, India’s largest digital education company, posted a loss of Rs 147.93 crore for the fourth quarter of 2012-13.
Its consolidated total income for the quarter also plummeted by 35 per cent to Rs 336.41 crore.
For 2012-13, Educomp reported a consolidated net loss of Rs 132.83 crore.
Shantanu Prakash, Chairman and Managing Director of Educomp Solutions, said: “This (debt restructuring) is an important step towards stabilising our business by enhancing liquidity and putting capital to optimal use.
“We believe this will help us to safeguard the interests of all our key stakeholder, including our customers and vendors.”
Downgraded
Over the last two months, two separate rating agencies have downgraded Educomp.
In May, India Ratings and Research downgraded the company’s rating to BB- from A, and, again, in June the company’s rating was further slashed to D.
Earlier, after its weak results for the fourth quarter of the last fiscal, the company had announced its plans to exit its non-profit and non-core business.
As part of that plan the company sold off its 50 per cent stake in IndiaCan and also in Eurokids International.
The company’s shares have tumbled on the BSE. In June, the stock hit a 52-week low of Rs 45.20.
Since then, it has dipped further and closed at Rs 33.90 on Monday.