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| Exchange Disseminated Time | Vardhman Spinning & General Mills Ltd has informed BSE that pursuant to the request of the secured creditors, the Company has amended the proposed Scheme of Arrangement & Demerger among the Company, Mahavir Spinning Mills Ltd and their respective shareholders and creditors to incorporate the following points: -
Upon the Scheme becoming effective, the existing working capital lenders relating to the Textile Undertaking of the Transferor Company, that have security over the Current Assets of the Transferor Company and the existing working capital lenders of the Transferee Company, that have security over the Current assets of the Transferee Company shall be entitled to security over all the current assets of the Transferee Company including the current assets of the Textile Undertaking. It is hereby clarified that the existing working capital lenders relating to the Textile Undertaking of the Transferor Company and the existing working capital lenders of the Transferee Company shall rank pari passu with each other in respect all such secured Current assets of the Transferee Company.
Upon the Scheme becoming effective, the existing term lenders relating to the Textile Undertaking of the Transferor Company, that have security over the moveable and immovable properties relating to the Textile Undertaking of the Transferor Company and the existing term lenders of the Transferee Company, that have security over the moveable and immovable properties of the Transferee Company shall be entitled to security over all the secured properties and assets of the Transferee Company including the properties and assets of the Textile Undertaking. It is hereby clarified that the existing term lenders relating to the Textile Undertaking of the Transferor Company and the existing term lenders of the Transferee Company shall rank pari passu with each other in respect all such secured properties and assets of the Transferee Company. It is further clarified that the charge created in favour of such existing term lenders shall, in case of the Current Assets of the Transferee Company be subject to the charge created in favour of the working capital lenders of the Transferee Company.
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