Torrent Power has said it has received shareholders approval to raise debt with option for lenders to convert that loan into equity upon occurrence of certain conditions.
Shareholders approved the special resolution for availing of the financial assistance (loans or debt) having an option available to the lenders for conversion of such financial assistance into equity shares of the company upon occurrence of certain events, Torrent Power stated in a BSE filing today.
According to the statement, the special resolution got 94.03 per cent votes in favour of it.
As per the resolution, this financial assistance can be loans, debentures or any other financial assistance categorised as loans up to an amount which would be approved by the shareholders.
The resolution provides that these conditions on which loan can be converted into equity could be default in payment of interest or repayment of any instalment or a combination thereof.
These conditions for converting loan into debt could be by way of any right conferred on the lenders pursuant to any regulations of Reserve Bank of India as may be modified from time to time.