CDR gives a new lease of life to IVRCL
On June 28 the Corporate Debt Restructuring Empowered Group (CDR EG) of Reserve Bank of India had a discussion in a meeting and had approved the Corporate Debt Restructuring proposal submitted by IVRCL. IVRCL is a leading infrastructure company and has a name in the roadways, express highway and other infrastructure related construction projects.
This move was induced to give a boost to the stressed company and ensure that they can finish the undertaken projects. About 20 banks led by State Bank of India were involved in the restructure process. R Balarami Reddy the chief financial officer of IVRCL mentioned that under the CDR proposal the banks typically increase the repayment period of loans to the stressed borrowers and offer a moratorium and reduce the lending rates. The restructured package covers Rs 7,350 crore.
The board of directors of this Hyderabad-based construction and infrastructure company IVRCL, in its meeting held on Monday, passed the necessary resolutions for the implementation of the corporate debt restructuring scheme (CDR) for their company. Reddy mentioned that this significant development and comes in as a big relief. This will help to mitigate the cash crunch and expedite the stalled or slowed down projects.
Reddy mentioned that the company has a strong order book of Rs 20,000 crore and will implement them as per plans. This CDR scheme will help the company to take off again by implementing various projects, which were stuck due to funding issues.
Source- The Hindu Business Line
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