WS Industries initiates process to settle dues to the lender

To allow Abhishaya Infrastructure to take over subsidiary

City-based WS Industries India Ltd. has set in motion the process of diluting its majority holding in its subsidiary WS T&D Ltd. to its lender Abhishaya Infrastructure Pvt. Ltd. (AIPL), according to a regulatory filing.

WS T&D is a subsidiary of WS Industries, which makes porcelain insulators for electrical transmission lines. WS Industries wound up its operations on November 29, 2018 following suspension of production and settlement with workers.

To clear its outstanding dues, WS Industries has decided to transfer its immovable property (measuring 6.64 hectares) in the city to its subsidiary WS T&D.

As part consideration for the transfer of the property, WS T&D has decided to take over the outstanding loan owed to AIPL. The loan clause contains an option in favour of the lender to convert the outstanding amount into equity shares of WS T&D.

Further, WS T&D had raised funds from AIPL by issuance of compulsorily convertible debentures and fresh equity shares representing 49% of its equity share capital. On its part, WS Industries had transferred to AIPL all the compulsorily convertible debentures held by it in the subsidiary, WS Industries said .

All such, compulsorily convertible debentures held by AIPL are convertible into equity shares at the option of the debenture-holder, the note said.

AIPL is likely to acquire majority equity shares in WS T&D as and when it exercise its option to convert the aforesaid loans and the compulsorily convertible debentures, along with the equity shares of the subsidiary already held by it. WS Industries also proposes to transfer, sell or dispose-off immovable property of 47.77 acres of Vizag unit.