Debt Resolution

Sebi asks CRAs to verify issuer's funds availability on non-payment of debt

Markets regulator Sebi on Monday directed Credit Rating Agencies (CRAs) to verify the issuer's fund availability and ascertain the reasons for payment failure in cases where non-payment of debt arises due to factors beyond the issuer's control. Also, CRAs have to ensure that the required payments are deposited into an escrow account on the due date in these cases. These additional guidelines have been introduced to address scenarios of non-payment of debt (principal or interest) caused by factors beyond the issuer's control. These factors include issues such as incorrect investor account details, outdated payment information, or government-mandated account freezes. "It has been decided that in the aforesaid scenario, the CRA shall confirm and verify the availability of adequate funds with the issuer and also confirm and verify the proof of failure of the required payment of debt (principal and/ or interest) and the reasons for failure," Sebi said in its circular. Additionally, CRA

China's Country Garden submits debt restructuring plan to creditors

The projection shows the developer expects a weaker cash flow in coming years compared with the estimates it had shared

Vi's Rs 25,000 cr debt-funding delay may threaten financial turnaround

Vodafone Idea owes Rs 70,320 crore in AGR-related dues, a liability that it is struggling to meet, especially after the Supreme Court's dismissal of its petition

FM Nirmala Sitharaman calls for deeper dialogue on global sovereign debt

At roundtable in Washington DC, she cautions against contingency financing instruments

Sri Lankan govt reaches debt-restructuring agreement with bondholders

The Sri Lankan government has announced a long-delayed debt restructuring agreement with its sovereign bondholders, in a major relief to the cash-strapped island nation. In a statement on Friday, the Ministry of Finance said it reached an agreement with representatives of its international and local holders of International Sovereign Bonds (ISB) on September 19. Sri Lankan authorities have "completed their consultations with Sri Lanka's Official Creditor Committee (OCC) and the IMF (International Monetary Fund)," said the statement from the Treasury. It added that the agreement is compatible with the comparative treatment principle. The announcement came as the new National People's Power (NPP) government led by President Anura Kumara Dissanayake expressed willingness to accept the agreement during the talks held with the visiting IMF delegation here in Colombo on Thursday and Friday. During the two days of talks, Dissanayake reiterated Sri Lanka's position that some of the rigid

Minimise interest cost with the avalanche debt repayment strategy

Here are strategies borrowers looking to escape a debt trap can adopt

MTNL seeks Rs 1,151.65 cr for sovereign guarantee bonds interest in FY25

Debt-ridden state-run telecom firm MTNL has sought Rs 1,151.65 crore for payment of interest arising out of sovereign guarantee bonds in the current fiscal, Parliament was informed on Thursday. Minister of State for Communications Pemmasani Chandra Sekhar in a written reply to the Rajya Sabha said the government has in fact taken various steps for revival of MTNL and BSNL in 2019 and 2022 that include revival package to both companies. "Mahanagar Telephone Nigam Limited (MTNL) has sought Rs 1,151.65 crore to meet the payment of interest on Sovereign Guarantee Bonds for Financial Year 2024-25," Sekhar said. The minister was replying to a question on demands of funds by MTNL from the government to pay interests on debt obligations, details of the demand and the reasons for the state-owned telecom company MTNL making losses. He said the government allocated Rs 69,000 crore in the first revival package in 2019 to BSNL and MTNL that brought down operating costs. "In 2022, revival packa

Tata Power steps up efforts to rejig debt, working capital measures

As of March 2024, Tata Power's consolidated debt stood at Rs 49,480 crore

Debt restructuring deal aids Sri Lanka's economic revival: Wickremesinghe

President Ranil Wickremesinghe on Tuesday said substantial progress" has been achieved in Sri Lanka's debt restructuring, which he said provided the much-needed breathing space for the cash-strapped country to transform its bankrupt economy into a resilient and stable one. Briefing Parliament on the country's resulting benefits of the correct course of action, President Wickremesinghe also countered the Opposition's criticism of the debt restructuring agreement with major bilateral creditors and promised to table all agreements and documents related to it to a Parliamentary panel. In April 2022, the island nation declared its first-ever sovereign default since gaining Independence from Britain in 1948. The unprecedented financial crisis led President Ranil Wickremesinghe's predecessor Gotabaya Rajapaksa to quit office in 2022 amid civil unrest. Earlier last week, President Wickremesinghe announced that debt restructuring agreements were finalised with bilateral lenders, including ..

Sri Lanka to save $5 billion after bilateral debt rework: Wickremesinghe

The cash-strapped South Asian country inked deals with China and other creditor nations to restructure about $10 billion

Sobha Ltd to launch rights issue on Friday to raise up to Rs 2,000 cr

Realty firm Sobha Ltd will launch its rights issue on Friday to raise up to Rs 2,000 crore mainly to reduce debt, purchase land as well as machines and meet the construction cost of its various projects. The issue will close on July 4. On June 12, the Board approved the terms of the rights issue. The Bengaluru-based company would issue 1,21,07,981 equity shares each on partly-paid basis for an amount up to Rs 2,000 crore. The price fixed for rights issue is Rs 1,651 per share (including premium of Rs 1,641 per share). The rights entitlement ratio has been fixed at 6 rights equity shares for every 47 fully paid-up equity share of the company held by the eligible equity shareholders of the company, as on the record date. On the objects of the issue, the company has proposed to utilise Rs 905 crore for repayment or prepayment, in full or in part, of certain borrowings. The company plans to utilise Rs 212.35 crore to fund certain project related expenses for ongoing and forthcoming

Wealthy nation creditor club sees tide shifting as debt defaults decline

A string of defaults, from Zambia to Sri Lanka, began in 2020 when the Covid-19 pandemic triggered a series of economic shocks

Eyeing expansion in South, West markets: Puravankara CEO Abhishek Kapoor

Kapoor discussed the factors driving revenue growth, strategy to strengthen the Southern market, project pipeline, and investment targets

Sri Lanka fails to strike agreement on restructuring terms with bondholders

Sri Lanka plunged into its worst financial crisis since independence from the British in 1948 after its foreign exchange reserves ran to catastrophic lows in early 2022

Adani Power merges Rs 19,700 cr loans from 6 arms into long-term debt

Adani Power on Thursday said it consolidated different short-term loan facilities worth Rs 19,700 crore availed by the company's six special purpose vehicles into a single long-term debt. The revised arrangement will help the company benefit from a uniform tenure and reduce effective interest rate, Adani Power said in a regulatory filing. The company said the loan consolidation under a consortium financing arrangement comprising eight lenders became possible with the amalgamation of its six special purpose vehicles (SPVs) after the credit rating of Adani Power Limited (APL) was enhanced to AA-. In a separate filing, Adani Power informed that its wholly-owned subsidiary Mahan Energen Limited (MEL) has entered into a 20-year long-term power purchase agreement with Reliance Industries Limited (RIL). The agreement is for the supply of 500 MW of electricity under the captive user policy as defined in the Electricity Rules, 2005, the filing said. One unit of 600 MW capacity of MEL's the

Adani's stake purchase in Gopalpur Port to provide debt relief to SP Group

Adani Ports agreed to purchase a 95% stake in the port for 13.5 billion rupees ($162 million) from Shapoorji and Orissa Stevedores Ltd

Maldives President Muizzu calls India its closest ally, seeks debt relief

After his anti-India rhetoric, Maldives President Mohamed Muizzu has struck a reconciliatory tone, saying India will continue to remain his country's closest ally and urged New Delhi to provide debt relief to the archipelago nation. The Maldives owed approximately USD 400.9 million to India by the end of last year. Ever since he took oath as the president in November last year, the pro-China Maldivian leader has pursued a hardline stand towards India and within hours had demanded that Indian military personnel operating three aviation platforms be repatriated from his country by May 10. On Thursday, in his first interview with the local media since assuming office, Muizzu said India was instrumental in providing aid to the Maldives and has implemented the greatest number of projects. India will continue to remain the Maldives' closest ally, he said and emphasised that there was no question about it, Maldives news portal Edition.mv said in a report that carried excerpts of Muizzu's

Will cooperate fully with Sebi in probe into debt issue: JM Financial

JM Financial Ltd has said it would fully cooperate with capital market regulator Sebi in its investigation into the public issue of debt securities. The statement came after Sebi barred JM Financial from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms. However, JM Financial can continue to act as a lead manager for the public issue of debt securities for a period of 60 days in case of existing mandates, Sebi said in its interim order on Thursday. Further, the regulator will undertake an investigation into these issues, to be completed within six months. Following the order, JM Financial in a filing to the stock exchanges said, "The company shall fully cooperate with Sebi in this investigation". The Sebi's directive came days after the Reserve Bank barred JM Financial Products Ltd from providing any form of financing against shares and debentures, including sanction and disbursal of loans against initial public

McLeod Russel India submits fresh plan for debt resolution to lenders

It had earlier offered a one-time payment (OTS) of Rs 1,030 crore to lenders in settling the entire outstanding against the loans including interest

Deficit reduction will stabilise debt-to-GDP ratio over medium term: Fitch

Fitch Ratings on Friday said the slightly faster pace of fiscal deficit reduction does not significantly change India's sovereign credit profile but the government's emphasis on deficit reduction will help to stabilise the debt-to-GDP ratio over the medium term. In a post budget commentary, Fitch Ratings Director, Sovereign Ratings, Jeremy Zook said over the next five years, India's government debt-to-GDP ratio would be broadly stable at just above 80 per cent of GDP. This is based on a continued path of gradual deficit reduction, as well as robust nominal growth of around 10.5 per cent of GDP. In the interim Budget 2024-25, presented in Parliament on Thursday, the government revised lower its current year fiscal deficit to 5.8 per cent from 5.9 per cent budgeted earlier. The deficit, which is the gap between the government's revenue and expenditure, will come down to 5.1 per cent in 2024-25 and further to 4.5 per cent by 2025-26. Fitch said this demonstrates a firm desire to adher