| The fresh flow of funds from the NRIs will further aid BPL in managing the operations of the group, after having recently managed to get stakeholders' (like banks and financial institutions) approval for its corporate debt restructuring (CDR). |
| A senior official of the group said that the Rs 82 crore will start to flow in shortly and "will invariably be of great help to the group". BPL is also putting together a strong strategy to revive its colour TV business after having spun the business off into a separate joint venture with Sanyo. |
| BPL Ltd got Rs 380 crore by transferring the CTV business to the joint venture and the cash will be used to settle a part of its huge debt. As part of its CDR package, some of the lenders will exit on receiving cash, the others will recast the remaining debt. The amount to be recast will vary, depending on the number of lenders who decide to exit. |
| ICICI Bank has an exposure of Rs 600 crore to the BPL Group and is the lead bank of the consortium of lenders which includes Canara Bank with an exposure of Rs 150 crore and Exim Bank with Rs 40 crore. |
| The company's debt recast proposal for the remaining dues is expected to be taken up at future meetings of the CDR. The details of the package may be reworked by the lenders and at the moment the CDR has suggested a 10-year repayment period with a reduced interest rate of about 12.5 per cent. |
| The company reportedly has worked out three options for its lenders as per the restructuring package. These are: exit the account altogether with a 72 per cent "haircut" on the principal amount; take a 50 per cent "haircut", receive 25 per cent of the principal as cash upfront and restructure the remaining amount through the CDR; take no "haircut", receive 2 per cent of the principal as cash and restructure the remaining amount. |
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