IVRCL has received approval for debt recast proposal from Corporate Debt Restructuring Empowered Group of the Reserve Bank of India. The restructured package covers Rs 7,350 crore. About 20 banks led by State Bank of India (SBI) were involved in the restructure process. Under CDR, banks typically increase the repayment period of loans to stressed borrowers, offer a moratorium and reduce lending rates.
This will enable the company to take off again by implementing various projects which were stuck due to funding issues. Moreover, the company will have access to a priority debt of Rs 175 crore, additional cash credit of Rs 200 crore, Rs 1,400 crore non-fund credit and Rs 300 crore of letter of credit. All of them will be interest-free from December 1, 2013, and have a moratorium of 28 months on term loans.
IVRCL is engaged into engineering procurement and construction (EPC) activities in India. It conducts operations in 5 sectors namely Water and Environment, Transportation, Buildings, Power and Industrial Structures.
