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MUMBAI, May 12

ESSAR Oil Ltd today said a majority of investors holding its 14 per cent secured redeemable non-convertible debentures have agreed to revised payment schedules and interest rates proposed by the company at a court-directed meeting.

The Gujarat High Court had, on April 4, directed Essar Oil to call, on May 12, a meeting of three sets of debenture holders - those holding more than 2,000 NCDs worth Rs 105 each, those holding 2,000 NCDs worth Rs 105 each and those holding less than 2,000 NCDs of the same value - to seek their approval for the proposed restructuring. The meeting of those holding more than 2,000 debentures (mainly comprising financial institutions, banks and mutual funds) has been adjourned to June 14, the company informed the stock exchanges today.

The company had to restructure its debenture redemptions after its 10.5 million-tonne refinery project was delayed over the last few years. The company had raised the money for its oil refinery project at Vadinar in Gujarat. The company claims that so far 64 per cent work on the refinery and terminal has been completed at a cost of Rs 6,300 crore.

ABB, EPC contractors to the project, are to provide deferred credit worth $43 million apart from bridge funding of $48 million. Plant and machinery worth $430 million is said to have already arrived at the site while $200 million-worth equipment is ready for shipment.

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