April 4 (Reuters) - Gammon India Ltd GAMM.NS :

* Says board to approach CDR lenders to seek nod for preferential issue

debentures for up to 1 billion rupees

* Source text:

Gammon India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 03, 2014, inter alia, has resolved to approach the CDR Lenders/Corporate Debt Restructuring Empowered Group for seeking its approval for:

1. Issue of Zero Coupon Compulsorily Convertible Debentures for an amount not exceeding Rs. 100 Crores [Rupees One Hundred Crores Only] on preferential basis to Promoters/Entities, at a price to be decided pursuant to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, against their contribution made towards "Promoter Contribution" as envisaged under the Corporate Debt Restructuring (CDR) Scheme approved on June 24, 2013 and pursuant to the Master Restructuring Agreement dated September 24, 2013 executed by the Company with the CDR Lenders;

2. Appointment of consultants to advise the Company on options for value optimization of the Company's business.

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