The Hindu : CESC's debt restructuring exercise

Online edition of India's National Newspaper
Saturday, Sep 20, 2003

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CESC's debt restructuring exercise

By Our Staff Correspondent

KOLKATA SEPT. 19. CESC will issue 33 million fresh shares to three promoting companies (Hiltop, Jubilee and Adeptunder) under RPG Enterprises at Rs. 49.7 per share as part of its corporate debt restructuring exercise.

The exercise would be over in a couple of weeks.

Addressing shareholders at the annual meeting held here today the company Vice Chairman, Sanjiv Goenka, said the exercise would enhance the promoter's stake by 4 per cent.

Mr. Goenka said the company was expected to register a profit before tax in this fiscal and "will come back into the dividend list sooner or later.'' He blamed the "lower tariff'' in Kolkata circle as the prime reason behind the company's woes.

Without clarifying the status of the company's proposed investment in a mega thermal power plant in Balagarh (one of the early IPPs cleared by the Centre) under the banner of Balagarh Power Company, Mr. Goenka said CESC was considering setting up a new power plant of 250 MW.

The location of the project and financing options, however, were yet to be firmed up. It may be mentioned that though incorporated the Balagarh Power Company till date merely exists on paper.

Meanwhile the shareholders had put all the resolutions of today's AGM including clearing of revised accounts of 2000-01, 2001-02 and 2002-03 on poll.

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