Amira Nature Foods Ltd. Receives License to Convert Land Use from Factory to Residential Allowing for Monetization
27 January 2018 - 12:59AM
Business Wire
Amira Nature Foods Ltd (the “Company,” “Amira”) (NYSE: ANFI), a
leading global provider of branded, packaged Indian specialty rice,
announced that on January 23, 2018 Amira Foods India, Ltd. (“Amira
India”) the Company’s subsidiary received approval of a license
from the Directorate of Town & Country Planning of Haryana
India to monetize 9 acres of its 17 wholly owned acres of real
estate property currently used as factory to residential use.
Amira India applied for the license early last year for all 17
acres, and the license for the remaining 8 acres is pending. As
previously disclosed, and in connection with the receipt of the
license, Amira India will begin the planned process of re-locating
its existing manufacturing facility to a new location. Amira’s
existing manufacturing facility was opened in 1996 in what, at that
time, was a primarily an agricultural area. Today the manufacturing
facility is in a residential area surrounded by multi-story
apartment buildings. The Company believes that the re-location of
the facility will allow it to improve operational effectiveness and
flexibility, provides the opportunity to reduce operating costs,
and provides the opportunity to realize what the Company believes
is significant unrealized value through converting its owned
real-estate from commercial to residential use. The Company is
currently exploring options to maximize the value of this owned
real estate asset.
The conversion of the real-estate asset from factory to
residential will require the Company’s existing lenders to amend
and/or refinance their existing debt to include the repurposed
collateral. The Company has begun those discussion with existing
lenders. There can be no assurance the existing lenders will agree
to amend or refinance the existing debt on terms acceptable to the
Company, and the Company may need to seek additional sources of
financing. The Company is actively considering its options with
regards to financing.
About Amira Nature Foods Ltd
Founded in 1915, Amira has evolved into a leading global
manufacturer, marketer, and distributor of branded packaged
specialty rice and other related food products, with sales across
five continents around the world. The Company generates the
majority of its revenue through the sale of Basmati rice, a premium
long-grain variety of rice grown only in the geographically
indicated region of the Indian sub-continent, as well as other
specialty rice. It sells its products under its flagship Amira
brand, as well as other Company owned brands and third party
brands. The Company expanded its product offerings in recent years
to include other value-add categories such as edible oils and
organics. The Company also sells other products such as wheat,
barley, legumes, and other produce to large institutional
customers. The Company’s fourth generation leadership has built on
a rich, century-old legacy and transformed Amira from a local
family-run business to a publicly listed, globally focused,
packaged food company with a global leadership position in the high
growth Basmati rice sector. Amira sells its products through a
broad distribution network in both the developed and emerging
markets. The Company’s global headquarters are in Dubai, and United
Arab Emirates, it also has offices in India, Malaysia, Singapore,
Germany, the United Kingdom, and the United States. Amira Nature
Foods Ltd is listed on the New York Stock Exchange (NYSE) under the
ticker symbol “ANFI.”
For more information, please visit www.amira.net.
Safe Harbor for Forward-Looking Statements
This press release contains statements of a forward-looking
nature. This Form 6-K Report contains statements of a
forward-looking nature. These statements are made under the “safe.
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. You can identify these forward-looking statements by
words or phrases such as “may,” “will,” “except,” “anticipate,”
“aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,”
“future” or other similar expressions. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. There is no assurance that
our current expectations and projections are accurate. These
forward-looking statements include, but are not limited to:
our goals and strategies;
our operations and expansion plans;
our future business development, results of
operations, financial condition and financial statements;
our ability to restructure our existing debt
obligations;
our future business development, results of
operations, financial condition and financial statements;
our ability to develop our real property for
residential use;
our ability to protect our intellectual
property rights;
projected revenue, profits, earnings and
other estimated financial information;
our ability to maintain strong relationships
with our customers and suppliers;
the continued application of the proceeds
from our initial public offering (“IPO”);
governmental policies regarding our industry;
and
the impact of legal proceedings.
We would like to caution you not to place undue reliance on
forward-looking statements and you should read these statements in
conjunction with the risk factors disclosed in “Risk Factors”
appearing in the Annual Report. Those risks are not exhaustive. We
operate in a rapidly evolving environment. New risk factors emerge
from time to time, and it is impossible for our management to
predict all risk factors, nor can we assess the impact of all
factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ from
those contained in any forward-looking statement. We do not
undertake any obligation to update or revise the forward-looking
statements except as required under applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180126005325/en/
Amira Nature Foods Ltd.Amy
Greeneamy.greene@theamiragroup.comorfor Amira Nature Foods
Ltd.Katie Turnerkatie.turner@icrinc.com
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