April 13, 2021 (MLN): The Shareholders of Ismail Industries Limited, in their Annual General Meeting held yesterday, have approved the investment in the recently incorporated associated/ subsidiary company Ismail Resin (Private) Limited, which has the intention of setting up a Polyester Resin (PET Resin) Manufacturing Plant.
The investment will be in the form of equity for an amount up to Rs. 1,500,000,000/- divided into 150,000,000 ordinary shares of Rs. 10/- each.
The shareholders also approved to issue Cross Corporate Guarantee up to Rs. 4,700,000,000/ for Ismail Resin (Private) Limited.
In addition to this, shareholders resolved to issue a guarantee in the form of Sponsors Support Agreement to the lenders for Ismail Resin (Private) Limited for investment in the form of equity or subordinated debts to cover the cost over-run or to cover the funding shortfall or any other obligation that may arise under financing documentation /agreements executed with them. Such sponsor obligation shall be for a period of the tenure of the project loan, or such other date as may be prescribed in the Sponsors Support Agreement.
Moreover, a Cross Corporate Guarantee of up to Rs.600 million for its subsidiary company Hudson Pharma (Private) Limited has also been approved.
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