Mumbai, Dec. 24 :    Mumbai, Dec. 24:  Two promoter-directors have resigned from the board of Arvind Mills after the financial institutions tightened the grip over the company. Niranjan N. Lalbhai, and Samveg A. Lalbhai, managing director and directors, quit as part of a sweeping restructuring drive foisted by the lenders on the debt-bloated firm. This leaves only Arvind Lalbhai, CMD, and Sanjay Lalbhai, the managing director, on the board. Though the exit of the two Lalbhais took place under a debt-restructuring agreement that the Ahmedabad-based denim maker reached with FIs a few months ago, industry circles say there is more to it than meets the eye. The deal came after lenders who were not repaid decided to restructure a company reeling under a Rs 2500-crore debt. The Lalbhais agreed four independent directors would be nominated by lenders if loans were not cleared. The FIs' representatives will choose another four directors from a list of three names provided by Arvind Mills for each position. An independent auditor was also to be appointed to monitor cash flows. The plan, aimed at reducing the company's burgeoning debt burden and improving its financial health, is one of the first in the private sector where lenders were given three choices: debt buyback, lower interest rates on debt remaining after the buyback is executed and sharing of gains in case the company did well. While FIs deny a change of guard is taking place at Arvind Mills, it is apparent that they have tightened their grip over the company. This is clear from the fact that FI representatives have set up a monitoring and control mechanism. The company has over 60 lenders and except for a few , most of the lenders have supported the debt recast.