GMR Rajahmundry Energy Ltd. successfully executes the Resolution Plan

GMR Infrastructure Ltd. (GIL), is pleased to announce execution of a bilateral Resolution plan between its Associate Company, GMR Rajahmundry Energy Ltd. (GREL) & the GREL Lenders.

The key features of the Resolution Plan are:

– The Resolution Plan has been approved by 100% of Lenders
– The existing Debt of Rs. 2353 crore has been brought down to a Sustainable Debt of Rs. 1412 crore.
– Against above Sustainable debt of Rs 1412.Crs, GMR Group has already infused an amount of Rs. 395 crore towards meeting 20% of Principal towards repayment of the Sustainable Debt and the interest servicing obligations of GREL for the first year

– This leaves balance outstanding Sustainable debt of Rs 1130 crs carrying a floating rate of 9.% p.a repayable over 20 years.

– The Balance Debt of Rs. 941 crore has been converted into Long Dated Cumulative Redeemable Preference Shares (CRPS) carrying 0.1% which is repayable from 17th to the 20th year

Commenting on the development, Mr. Grandhi Kiran Kumar, Managing Director & CEO, GIL said, “The first of its kind Resolution Plan offers a mutually beneficial resolution for both Lenders and the company through a long-term solution for the existing debt and related obligations of the Group. 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.”

GMR remains confident of availability of gas in years to come ensuring good performance of its Rajahmundry plant and thereby meeting obligation towards both its Sustainable as well as Long dated Preference shares.

GMR believes that gas based power plants will provide peaking power support to the country’s growing non-conventional energy of Wind and Solar power, and the Resolution Plan shall be mutually rewarding to GMR Group and Lenders as they continue to own 45% and 55% of shareholding respectively.

Shares of GMR INFRASTRUCTURE LTD. was last trading in BSE at Rs.16.7 as compared to the previous close of Rs. 16.6. The total number of shares traded during the day was 603512 in over 605 trades.

The stock hit an intraday high of Rs. 16.95 and intraday low of 16.55. The net turnover during the day was Rs. 10087718.

Let’s block ads! (Why?)