With rising debt, infrastructure firm IVRCL has initiated Corporate Debt Restructuring (CDR) process to get its loan repayment period extended.
"... The company has initiated the process of CDR prescribed under the Reserve bank of India guidelines by way of reference to CDR cell," the Hyderabad-based company said in a BSE filing today.
IVRCL, which had nearly Rs 3,000 crore debt, including Rs 2,795 crore short-term borrowings as on September-end, has been consistently incurring losses for some time now.
Its net loss during the July-September quarter stood at Rs 122.49 crore, up from Rs 88.48 crore in previous quarter. Total net loss of the company in the first six months of the current fiscal stood at Rs 211 crore.
During the July-September period, IVRCL's finance costs went up to Rs 41 crore from Rs 31 crore in the previous quarter.
Like some of its debt-laden infrastructure peers, which has recently been referred to CDR cell, IVRCL is also facing problems as a result of the slowdown in the infrastructure space due to subdued growth of the economy.
CDR is a mechanism that permits viable firms additional time to meet their debt obligations, subject to certain terms and condition.
Between April and December, banks have referred a record over Rs 1 lakh crore worth of stressed assets to CDR cell. In December last year alone, 14 cases worth over Rs 18,000 crore were referred to the CDR cell.
Shares of the company today settled at Rs 14.90 apiece, up 1.71 per cent, on the BSE today.
