ZEE Telefilms Ltd (ZTL) has announced that it plans to carry out a debt restructuring programme to reduce its overall debt burden.
Currently, ZTL has an outstanding debt position of Rs 500 crore, a company official said.
The company said it is exploring the possibilities to raise low-cost financing for some of the projects in hand and for its capital expenditure plans.
In a statement to the Bombay Stock Exchange, the company said that its board is to meet on February 11 to approve this proposal. The company said it will not be raising the current debt level. The company had issued a notice to the BSE on Thursday saying that its board will consider and approve raising of funds by way of debt whether convertible or non-convertible and/or equity, in domestic or international capital markets.
In today's notice, the company clarified that it is seeking funds to carry out a debt restructuring programme and there will not be an increase in the overall debt position.
``In order to reduce its overall debt burden, the company intends to get approval from the board to restructure its debt portfolio. The company with the surplus cash in hand intends to repay its high cost debt,'' ZTL said.
The company is restructuring its debt portfolio to achieve the objective of debt free company in short to medium term, the statement said.
During the third quarter of 2003-04, ZTL had a 46 per cent drop in interest expense at Rs 12.2 crore against Rs 22.6 crore in the year-ago period.
According to analysts, the decline in interest cost was higher than expectation because of lower net debt and lower interest rates.