Shapoorji Pallonji repays lenders, exits debt recast
Premium- The accelerated repayment was enabled by the Mistry family infusing over Rs5,100 crore into the company in the past one year
MUMBAI : Shapoorji Pallonji and Co Pvt Ltd (SPCPL) on Thursday said it has repaid lenders ₹12,450 crore to exit the covid-induced one-time debt recast scheme implemented last year.
The accelerated repayment, the flagship company of the Shapoorji Pallonji group said in a statement, was enabled by the Mistry family infusing over ₹5,100 crore into the company in the past one year. That apart, SPCPL said it has also achieved marquee monetization worth ₹3,750 crore from two of its assets, including Sterling Wilson Renewable Energy Ltd and Eureka Forbes Ltd.
The one-time debt recast was implemented on 31 March 2021 by lenders, with a resolution plan that sought a two-year extension of repayment timelines. The company said on Thursday that it did not involve any of haircut for lenders led by State Bank of India.
“We are very happy to have repaid all our lenders ahead of plan," a spokesperson for the Shapoorji Pallonji group said in the statement.
The company expects this development to have a positive impact on the group’s credit outlook, the spokesperson added.
The engineering and construction company has diverse interests, including real estate and, oil and gas. Its construction business has an order book in excess of ₹30,000 crore and the real estate franchise of the Shapoorji Pallonji group achieved over ₹4,000 core of sales in FY22, the statement said.
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The company had approached lenders, for a recast after the covid-19 pandemic disrupted business. It had applied for a debt recast in September 2020, and banks signed an inter-creditor agreement in November to finalize the plan and implement it. In August 2020, the Reserve Bank of India (RBI) allowed lenders to restructure loans under a special window. While the recast had to be invoked by 31 December 2020, banks had time till the end of June 2021 to implement the plan for companies and till 31 March 2021 for retail borrowers.
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