GMR Power and Urban Infra’s step-down subsidiary -- GMR Warora Energy has entered into definitive agreements with its lenders to restructure its debt by way of Resolution Plan (RP) under RBI guidelines pertaining to Prudential Framework for Resolution of Stressed Assets dated Jun 07, 2019.
‘RP4’ rating has been assigned by CRISIL and CARE Ratings to the proposed RP, which is in line with the regulatory requirements. SBI (lead bank), Axis Bank (lead bank for WC) and other lenders who signed the Inter-creditor Agreement (ICA) have approved the Resolution Plan. The Resolution Plan will be effective from April 1, 2021 and will be considered implemented upon completion of the requisite actions as per RBI guidelines and the terms of the RP.
As per terms of RP approved by lenders, sustainable and unsustainable debt will be repaid as per the revised repayment schedule. Existing working capital facilities of Rs 580 crore sanctioned by the working capital consortium will continue. The interest rate on sustainable debt amounting to Rs 2350 crore will be revised to 8.50% p.a. (linked to MCLR) and unsustainable debt (including accrued interest) amounting to Rs 788 crore will carry interest rate of 0.01% p.a. The loan will be repaid progressively over a period of 15 years, which is elongated by around 7 years from the existing repayment schedule.
GMR Power and Urban Infra, a subsidiary of GEPL holds expertise in the sectors of energy, urban infrastructure and transportation.
| Company Name | CMP |
|---|---|
| NTPC | 399.25 |
| Tata Power | 438.75 |
| Adani Power | 207.90 |
| Power Grid Corp | 317.00 |
| Torrent Power | 1645.00 |
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