B Mirror Report: Listed textile manufacturer Ring Shine Textiles Ltd has undertaken a major debt restructuring initiative to ease mounting financial pressure and restore long-term business stability.

At a board meeting held on April 20, the company approved a plan to adjust its existing liabilities with Eastern Bank PLC by taking a fresh loan from a related party. Under the decision, Ring Shine will borrow Tk 95 million from Lark Textiles Ltd, an associated entity.

The loan is interest-free, a move expected to significantly reduce the company’s financial expenses amid high lending rates in the banking sector.

According to the agreement, the loan will be repaid over a 10-year period, starting from January 1, 2027, through equal annual instalments. The funds will be used directly to settle outstanding dues with Eastern Bank.

Company officials said the restructuring effort has already yielded some relief, including a waiver of approximately $330,000 about 10 percent of the total liability. Around $780,000 has been paid as a down payment to reschedule the loan.

They expressed optimism that the interest-free facility would lower financing costs and improve earnings per share (EPS), while strengthening overall financial health.

Ring Shine Textiles, known for producing knit fabrics and exporting ready-made garments, has faced operational slowdowns in recent years due to high debt burdens and financial constraints.

The company believes successful implementation of the restructuring plan will help overcome liquidity challenges and support a return to normal business operations.

Meanwhile, Ring Shine’s share price on the Dhaka Stock Exchange has remained under pressure, hovering around face value in recent months amid weak investor confidence.