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GMR Power’s stepdown subsidiary to restructure debt via Resolution Plan; stock jumps ~1%

CRISIL and CARE Ratings have assigned an RP4 rating to the proposed RP, which is at par with the regulatory requirements.

September 09, 2022 10:47 IST | India Infoline News Service
GMR Power and Urban Infra Limited informed that its step-down subsidiary GMR Warora Energy Limited has entered into definitive agreements with the lenders for restructuring of its debt by way of Resolution Plan (RP) as per the RBI guidelines related to Prudential Framework for Resolution of Stressed Assets dated Jun 07, 2019.

CRISIL and CARE Ratings have assigned an RP4 rating to the proposed RP, which is at par with the regulatory requirements.

SBI (lead bank), Axis Bank (lead bank for WC), and other lenders have approved the resolution plan. It shall be effective from April 1, 2021, and will be considered implemented upon completion of the required actions as per RBI guidelines and the terms of the RP stated the company in a regulatory filing.

The sustainable and unsustainable debt shall be repaid in accordance with the modified repayment schedule, according to the conditions of the RP accepted by lenders.

The working capital consortium's existing working capital facilities of Rs580 crore would be maintained as earlier.

The interest rate on sustainable debt of Rs2,350 crore will be increased to 8.50% p.a. (tied to MCLR), while unsustainable debt (including accrued interest) of Rs788 crore will be lowered to 0.01% p.a.

The loan will be repaid gradually over a period of 15 years, which is approximately 7 years longer than the current repayment plan.

At around 10.52 AM, GMR Infra was trading 1.14% higher at Rs40.05, against previous close of Rs39.60 on NSE. It hit intraday high and low of Rs40.75 and Rs39.95 respectively.

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