Loan restructure to cross Rs 3 Lakh crore by the end of financial year
Mr. Vishwanath Nair concluded in a report that the loans restructured by corporate debt restructuring (CDR) will cross Rs 3 lakh crore by the end of this financial year. The loan recast in the financial year 2014 have crossed Rs 70, 000 crore with restructuring requests for nearly to Rs 20, 000 crore having delayed by the CDR cell which conducted its last meeting recently for this financial year.
The Banks have different opinion on finalizing the ABG Shipyard’s request
for reworking Rs 11,500 crore as the company has not paid money to some of its lenders on time. The 22 bank consortium will be waiting till the company regularizes interest payments.
A recast of Rs 6,600 crore for IVRCL has also been put on hold. The banks are going through the bad phase since last 2 years with hundreds of companies wanting easier repayment terms in financial year 2014. In the financial year 2014 nearly 100 companies approached to the CDR for loans of amount Rs 1.25 lakh crore to be recast. Whereas in 2013, nearly 130 organizations approached to the CDR and the amount they wanted re-worked was smaller at Rs91,500 crore.
At the same time IVRCL Indore Gujarat Road Toll ways (IIGRT), which is a special purpose vehicle (SPV) of Hyderabad based company IVRCL, has received approval for restructuring Rs 1,200 crore of debt from 6 bank consortium. IIGRT is responsible for the road development project on the Gujarat-Madhya Pradesh border. The aim of the project is to renovate the existing roads from two lanes to four lanes on NH 59 between Indore and Jhabua, covering 155 km distance.
The other situation including Raj Rayons (Rs 700 crore), Janki Corporation (Rs 500 crore) and Gupta Energy (Rs 500 crore) had also received green signal from the CDR cell in March. Gujarat NRE Coke too received a recast approval from its lender consortium for a debt of Rs 2, 400 crore. The company will have to repay this debt within eight years after the grace period of 2 years. The firm will get an additional help of amount Rs 370 crore with a new loan for the development of power plants at Dharwad, Karnataka.
A restructuring package to be sanctioned, 75 percent of the lenders by value and 60 percent by number need to agree for this proposal.
Source: The Financial Express
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