Gammon India Ltd. reported Rs 502 crore loss for the 18-month period leading up to March 2016, and approved the conversion of part of its outstanding loans into equity shares.
Total liabilities reached Rs 18,463 crore, while the order book stood at Rs 11,000 crore, the company informed the stock exchanges.
EPC Business Sale
The board also approved a revised investment cum shareholders agreement, to facilitate the sale of its unit. Gammon India will first transfer its civil engineering, procurement & construction business to Gammon Engineers & Contractors Private Ltd. (GECPL) for Rs 8.05 crore. Then, Thailand-based GP Group, headed by Kirit Shah, will buy 75 percent stake in GECPL.
In April 2016, the GP Group had proposed to buy majority stake in the Gammon unit for Rs 250 crore.
Conversion of Loans Into Equity
The Gammon India board also approved the conversion of loans granted to its wholly owned Netherlands-based subsidiaries into equity shares.
Gammon India also said that it is exploring several options to overcome the liquidity crisis.
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