Coking coal-maker Gujarat NRE Coke Ltd today said it has initiated the process of corporate debt restructuring (CDR), a month after the auditor's comment on its Australian subsidiary, Gujarat NRE Coking Coal.
The company informed exchanges about its plan to approach the CDR cell to realign its debt and is holding discussions with major secured lenders.
It was reported that Grant Thornton, the auditor refused to give an opinion on the accounts of Gujarat NRE Coking Coal for FY 2013 citing doubts over the company's ability to survive as a 'going concern' and inadequate information about its ability to repay debts.
City-based Gujarat NRE Coke Ltd has Rs 952 crore long term borrowing on its book as on March 2013 against Rs 756.9 crore in 2012.
The annual interest burden for FY 2013 is close to Rs 250 crore while for Q2 of FY 2014 it is 67 crore.
The company management declined to comment.
