Vishal Retail has said global private investment firm TPG has submitted a proposal to the corporate debt restructuring (CDR) cell to buy stake in the company, but it is subject to approval by lenders.
“Under the CDR mechanism, TPG has given a proposal to the CDR cell and the same has to be approved by all participating banks under CDR and also the CDR cell. This is at a nascent stage at the moment,” Vishal Retail said in a filing to the Bombay Stock Exchange.
Vishal Retail had initiated a debt restructuring exercise in November last year which was likely to get over by mid-March. It has proposed a two-year period for repayment of Rs 735 crore debt and has said that it is ready to seek equity participation from strategic investors as well.
“The company is under the burden of debt and to restructure the debt burden, the proposal of the company is under CDR mechanism. The CDR cell is reviewing the case and a few meetings have happened and a consensus is still awaited,” it said.