Ispat Industries, which had indicated to its euro-convertible bondholders to come out with a reschedulement plan on its outstanding $125 million issue within 45 days of maturity, has missed the deadline which lapsed today.
Anil Sureka, director-finance, Ispat Industries said, "We hope to complete the entire ECB recast proposal by September."
Though Sureka said the company had not given a definite time-frame within which come out with a reschedulement plan, the trustees to the bonds, Banker Trustee Co, in a communique to bondholders dated March 27 (a copy of which is in Business Standard's possession) had said: ".....ANZ has indicated that they hope to issue a definitive proposal to the bondholders in the next 30 to 45 days." ANZ Securities UK has been appointed as the financial advisors to the company.
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It appears that the company, in the recast proposal, is unlikely to offer bondholders any immediate exit scheme and would seek a rollover of the entire $122.2 million outstanding.
"Given our cashflow position at present, it is unlikely that we would arrive at a situation where the company will have to face any significant cash outflow," Surekha said. He said that no final decision has been taken on this issue.
Sureka said that Ispat's financial advisors were in constant touch with all major bondholders that would enable the company to arrive at an acceptable settlement.
At the same time, the company also has to contend with a significant amount of foreign loans that will have to be rescheduled in consultation with the foreign lenders. The company owes around $100 million and another $25 million to the German KfW and IFC, Washington.
Of this amount Rs 135 crore owed to KfW became payable by March 31, 2001, the company's annual report says. It is not known whether this amount has been made yet to KfW.