Centurion Bank gets court approval for Sabre revamp plan

Our Banking Bureau
13 September 2003

Mumbai: The Bombay High Court yesterday approved the recapitalisation and restructuring of Centurion Bank.

In an official release, the bank said the court''s final hearing was held yesterday and it approved the scheme of arrangement submitted by Sabre Capital.

The Reserve Bank of India''s permission had also been sought for the same, says a senior official of Centurion Bank, which has its registered office in Goa.

In April 2003, Sabre Capital Worldwide submitted the proposal to revive the private sector bank. The proposal was approved by the bank''s board of directors, and subsequently by its shareholders and creditors.

The scheme consists of three major proposals: restructuring of capital by reducing the face value of the bank''s share from Rs 10 to Re 1, infusion of fresh capital of Rs 319 crore in two phases, and takeover of management control by Sabre Capital and merger of Bank Muscat with Centurion Bank.

However, the merger of the foreign bank, which operates through a single branch in Bangalore, with Centurion Bank awaits the final hearing of the Karnataka High Court scheduled for 10 October 2003.