Friday Dec 12, 2025
Friday Dec 12, 2025
Thursday, 11 December 2025 06:13 - - {{hitsCtrl.values.hits}}
Hela Apparel Holdings PLC yesterday said it has reached agreements in principle with all lending banks on a debt restructuring proposal covering Rs. 15.1 billion in existing borrowings, while discussions continue with prospective strategic investors regarding a potential investment ranging from Rs. 3 billion to Rs. 4.4 billion.
The banking debt restructuring arrangement and prospective capital infusions are subject to conditions, including a minimum investment of Rs. 682 million by existing major shareholders.
The company said the agreed in-principle restructuring proposal includes concessional interest rates and a deferment of repayments. According to the amended section of the 2024/25 Annual Report, the revised terms provide for an interest rate of SOFR+1% for the first two years of the restructuring period, after which a mutually agreed reasonable interest rate will apply.
The total repayment tenure is nine years, including a one-year grace period for principal repayment. These developments are described as non-adjusting subsequent events as they relate to conditions arising after the reporting date.
Hela Apparel also said it is carrying out discussions with several strategic investors with a view to securing new equity investments in the group. The Board has provided in-principle approval to negotiate suitable terms of investment.
The company noted that the capital infusion plan contemplates approximately Rs. 1 billion from existing shareholders in the second half of 2025/2026, alongside an investment between Rs. 3 billion and Rs. 4.4 billion from a prospective strategic investor. The company said these discussions are progressing positively.
Once the terms of investment are agreed in principle with an investor, the company said it will provide the necessary market disclosures and seek shareholder approval as necessary, including through an extraordinary general meeting.
The group reported a negative net asset value per share of Rs. 4.55 as of end-September 2025, compared with a positive Rs. 5.76 a year earlier.
Lesing Hela Ltd., was the top shareholder with a 48.43% stake as at end-September, followed by Tars Investments Lanka Ltd., at 15.15%, Dilanka Jinadasa at 11.34%, and D.E.H. Mcvey at 2.64%.
The share closed Rs. 0.10 up yesterday at Rs. 3.20.
