New Delhi: Cash-strapped automobile maker Hindustan Motors on Thursday said its board will meet next week to consider allotment of shares and debentures to lenders on a preferential basis.
"A meeting of the company's board will be held on September 29, to consider allotment of shares and non-convertible debentures to the lenders (banks and financial institutions) on preferential basis," Hindustan Motors (HM) said in a filing to the BSE.
The allotment of shares and debentures to the lenders on preferential basis is being considered as per the corporate debt restructuring empowered group approval, it added.
Earlier this year, the company's management had declared suspension of work at its Uttarpara plant in the state.
The Uttarpara plant, which manufactures the Ambassador, had been facing a severe cash crunch and therefore, orders for manufacturing cars could not be executed.
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