September 30, 2011

Press Release No. 1

News about Koutons Retail India Limited

The media had reports that Koutons Retail India Limited has approved the debt restructuring plan.

The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company.

Koutons Retail India Limited has vide its letter inter-alia stated, “The Company proposal for Debt Restructuring was fixed for final approval in the CDR meeting held on September 29, 2011. After due deliberations, the final proposal submitted by the company was approved by the bankers under the CDR mechanism late last evening. The Company confirms the approval of CDR package of the Company by the bankers led by Indian Overseas Bank, the Monitoring Institution. The CDR package envisages converting part of the working capital facilities into WCTL, to fund the interest due for 2 years by way of a Funded Interest Term Loan and option to bankers to convert part of their debt into equity. A further reprieve for the company has been in the form of reduction in interest rate on all loans. The final minutes and LOA is expected shortly from the CDR Cell."