SBI Caps readies Gujarat State Petroleum Corp's loan reduction proposal

SBI has also been requested to extend conversion of Compulsorily Convertible Debentures amounting to Rs 5.5 billion

At a time when private companies are staring at insolvency, SBI Caps has worked out a bail-out package for state government-owned Gujarat State Petroleum Corporation where the State Bank of India is one of the lead bankers. In a presentation outlining the mechanism for loan resolution, it has proposed that SBI offer a debt of Rs 21 billion to refinance Gujarat State Financial Services Ltd’s (GSFS) loan to GSPC.

Prior to this refinancing, GSPC will draw incremental Rs 6 billion from GSFS as general corporate purpose loan. As a third step, fresh facility of Rs 15 billion will be availed from