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Friday, 13 May 2016

GMR energy arm opts for debt restructuring

GMR Rajahmundry Energy Limited (GREL), a subsidiary of GMR Infrastructure Limited (GIL) has adopted a Strategic Debt Restructuring Plan (SDR) to convert Rs.1,414 crore of its total debt of Rs.3,780 crore into equity.
“Considering the absence of long term Fuel Supply Agreements (FSA) and long term Power Purchase
Agreements (PPA), the consortium of lenders of GREL has adopted the Strategic Debt Restructuring Plan (SDR), as provided under the scheme permitted by the RBI,” according to a company statement on Friday. adding that the company in its meeting held on Friday has issued equity shares proportionately to all the lenders.
Now, the consortium lenders would have majority of 55 per cent shareholding in the company and the balance 45 per cent would be held by GMR.
After the conversion, the balance debt of around Rs 2,366 crore would have a repayment period of 20.5 years comprising a moratorium of 1.75 years and interest rate of 10.75 per cent.

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