Bharati Shipyard, which recently announced debt restructuring of Rs 2,854 crore under CDR programme, will continue to service Rs 306 crore debt which is outside the CDR, as per repayment schedule.
The company owes Rs 306 crore to five lenders, and the maximum amount has been extended by Development Bank of Singapore. Other four lenders are L&T Infrastructure Finance Ltd, Catholic Syrian Bank, Tata Capital and SICOM, a finance company partly owned by government of Maharashtra.
There is component of external commercial borrowings of about Rs 100 crore and unsecured loans worth Rs 70 crore.
PC Kapoor, managing director, Bharati Shipyard said: "These lenders are outside the purview of CDR mechanism. They will not be subject to the provisions of the final restructuring scheme. Thus, the company will meet the obligations as per the terms and conditions originally finalised with the respective banks/financial institutions on the respective due dates."
The company refused to give details of the payment schedules to these companies citing confidentiality.
Apart from the total debt of Rs 3,250 crore, the company has an outstanding non fund based limit of Rs 2,400 crore as on date. “These are the various letters of credit and bank guarantees issued by various lenders. These are non fund based facilities and not debt,” the company clarified.
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Bharati Shipyard has made a proposal to the Corporate Debt Restructuring (CDR) cell for reworking its term and working capital debt of Rs 2,854 crore out of the total debt of Rs 3,250 crore.
Kapoor said: “Majority of our orders come from the European markets, which is currently facing challenging times. However we are in the process of delivering 5 vessels in the next 6 months. The debt restructuring will help us to optimize costs and resources in the time to come.”
The company has an order book of Rs 6,800 crore to be executed by 2014. It is also in advanced stages of completion of its two Greenfield shipyards at Dabhol and Mangalore.
These capacities will enhance the production capacity, which will be used to execute large orders going forward, it said.