Essar Shipping shareholders, creditors approve demerger plan

Essar Shipping, Ports and Logistics today said its shareholders and secured creditors have given nod for demerger scheme of the company's shipping, logistics and oilfields business into a separate company.

Equity shareholders, secured creditors (including holders of non-convertible debentures) and unsecured creditors of the company, unanimously approved the scheme of arrangement between Essar Shipping Ports and Logistics Limited, Essar Ports & Terminals Limited, Essar International Limited, Essar Shipping Limited and their respective shareholders and creditors, at a court convened meeting, on 30 November 2010, the company said in a filing with the Bombay Stock Exchange (BSE).

In addition, the company said, an extra ordinary general meeting of the equity shareholders of the company passed a special resolution approving a reduction in the authorised, issued, subscribed and paid-up share capital of the company from Rs615,81,38,451 (including Rs13,05,251 on account of forfeited shares) to Rs410,58,60,721 (including Rs13,05,251 on account of forfeited shares).

The meeting also approved a reduction in the securities premium account and the capital redemption reserve account of the company by up to Rs4242.85 crore and Rs10.50 crore respectively.

The chairman appointed by the high court has filed his report of the said meetings with the Gujarat High Court, the release said.
  
In August this year, the company had announced plans to separate its shipping, logistics and oilfields business into a separate entity, Essar Shipping, while the existing entity was to be renamed as Essar Ports.