HYDERABAD: GMR Infrastructure Ltd (GIL) Friday said its lenders approved a resolution plan for its stressed gas-based power plant in Andhra Pradesh. It added that the company paid part of the sustainable debt as part of the plan, while the remaining is repayable over the next 20 years. The resolution plan for GMR Rajahmundry Energy Limited (GREL) included a reduction of its Rs 2,353 crore debt to sustainable debt of Rs 1,412 crore.
“Against the above sustainable debt, GMR Group has already infused an amount of Rs 395 crore towards meeting 20 per cent of principal towards repayment of the sustainable debt and the interest servicing obligations of GREL for the first year,” GMR said.
The rest of the Rs 1,130 crore is repayable at 9 per cent interest over 20 years. Lenders have converted the remaining existing debt of Rs 941 crore into Long Dated Cumulative Redeemable Preference Shares (CRPS) carrying 0.1 per cent repayable from 17th to the 20th year, GMR said in a statement to bourses. GMR Group and lenders hold 45 and 55 per cent stake in GREL respectively.
According to Grandhi Kiran Kumar, MD & CEO, GMR Infra, it was a first-of-its-kind resolution plan offering a mutually beneficial resolution for lenders and the company, through a long-term solution for existing debt and related obligations.
“It has reduced the debt for GMR Group and we believe this will de-risk the Group substantially. This also offers quality assets built on the ground an opportunity to perform to its potential,” he said. It may be noted that the consortium of lenders led by IDBI Bank last year had put on sale 55 per cent stake in GREL, which they acquired in 2016 following debt restructuring.