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GMR Chhattisgarh Energy does strategic debt restructuring

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IANS New Delhi
Last Updated : Feb 27 2017 | 7:43 PM IST

GMR Infrastructure on Monday said the consortium of lenders of its subsidiary GMR Chhattisgarh Energy Ltd has completed the subsidiary's strategic debt restructuring plan (SDR) permitted by the Reserve Bank of India (RBI).

"GMR Chhattisgarh Energy Ltd (GCEL), a subsidiary of GMR Infrastructure Ltd, has announced that the consortium of lenders of GCEL has adopted strategic debt restructuring plan (SDR), as provided under the scheme permitted by the RBI," GMR Infrastructure said in a statement here.

"Accordingly, GCEL has allotted shares to all the lenders," it said.

"As per the SDR scheme, out of the total outstanding debt (including accrued interest) of Rs 8,800 crore, debt to the extent of Rs 2,992 crore have been converted into equity by which the consortium lenders would have 52.4 per cent shareholding and the balance 47.6 per cent would be held by GMR," it added.

Following the conversion, the balance project debt stands at Rs 5,800 crore, with Rs. 2,992 crore equity held by lenders and Rs 2,721 crore equity held by the GMR Group, resulting in a lower debt-to-equity ratio.

"The lower debt levels would result in improving the long-term viability of the project," GMR said.

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GCEL is a 1,370 MW thermal power plant at Tilda, Raipur in Chhattisgarh. The project was fully commissioned in March 2016 and has long-term fuel security in the form of two captive coal blocks.

The plant is currently operating under short-term power purchase agreements (PPAs) through the exchange and bilateral routes, the statement added.

--IANS

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First Published: Feb 27 2017 | 7:28 PM IST

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