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Hindalco to go for financial restructuring

Hindalco to go for financial restructuring
PTI
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First Published: Mon, Mar 16 2009. 07 09 PM IST
Updated: Mon, Mar 16 2009. 07 09 PM IST
Mumbai: Aluminium major Hindalco Industries on Monday said it will go for financial restructuring of its businesses so that huge costs incurred on acquisitions do not impact the company’s operating results, a Bombay Stock Exchange filing by the company stated.
The company has called for an Extraordinary General Meeting on 2 April to seek shareholders’ approval for the same.
“The present global economic scenario especially in the commodity space had an adverse impact on its domestic and overseas operations which may result in impairment in value of its assets\investments,” the filing said.
To prevent its operational results from being impacted by such losses the firm would go for restructuring which may result in reduction of its capital through a Scheme of Arrangement to be overseen by the Bombay high court.
“This scheme will result in non-operational costs being charged against a reserve created for the purpose out of the securities premium balance of the company and which would be classified as, Business Reconstruction Reserve Account,” it stated in the filing.
The company’s growth strategy has led to incurring of various costs and it would continue to incur these in future, it added.
It, however, did not indicate to what extent the capital would get reduced.
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First Published: Mon, Mar 16 2009. 07 09 PM IST