GVK faces an uphill task to repay bank loans of several group companies

Despite a series of power asset sales by lenders following a payment default, the GVK group faces an uphill task to repay bank loans of several group companies.

Lenders are now worried that TAJGVK Hotels & Resorts, 50 per cent of which is owned by the GVK group, may face an uphill task to repay loans in FY21 due to GVK’s deteriorating financial metrics and the coronavirus pandemic.
 

A downgrade by rating firm, ICRA, in June had made lenders nervous after ICRA said TAJGVK’s coverage metrics were also likely to weaken substantially in FY21, given higher debt and weaker accruals.
 

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