Essar Shipping, part of the Ruias-controlled Essar Group, has decided to convert around Rs 800 crore of total Rs 5,500 crore debts into dollar loans to bring down the interest burden. It is in discussion with some domestic and foreign banks directly for this.
The company is facing cash-flow issues due to the general slowdown in the shipping industry and therefore plans to directly deal with the lenders and does not plan to go to i-bankers. The entity is sitting over a debt pile of over Rs 80,000 crore as of the September quarter.
