7/14/22, 1:00 PM gmr energy: GMR's lenders agree to rework power unit's Rs 2,900 crore loans - The Economic

,900 crore loans - The Economic Times

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Business News › Industry › Energy › Power › GMR's lenders agree to rework power unit's Rs 2,900 crore loans

GMR's lenders agree to rework power unit's Rs

2,900 crore loans
By Sangita Mehta, ET Bureau Last Updated: Jul 08, 2022, 12:25 PM IST
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Synopsis
GMR Warora had defaulted on interest payments on its loans and bonds last year. The
power unit has total debt of ₹2,913 crore, of which 81% is deemed as a sustainable
portion. The balance loan is unsustainable, which will be substituted with low-coupon
non-convertible debentures as per the deal with the lenders.

Lenders have agreed to restructure Rs

AP

2,900 crore of loans to GMR’s power-

producing unit, GMR Warora Energy,
in what would help the group remove
the non-performing-account tag on it,
said two people aware of the
development.

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The GMR Group has diversified interests ranging from airports to energy and
roads. GMR Warora had defaulted on interest payments on its loans and 3. Electricity bills in Delhi go up
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bonds last year.

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The power unit has total debt of Rs 2,913 crore, of which 81% is deemed as a 10,700 cr loss in Q1

sustainable portion. The balance loan is unsustainable, which will be

substituted with low-coupon non-convertible debentures as per the deal with
the lenders.

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from pre-Covid level

The sustainable portion of Rs 2,351 crore would be repaid in quarterly

installments by March 2037, said one of the people. The unstainable portion of
Rs 562 crore would be paid by September 2037, the person added.

https://economictimes.indiatimes.com/industry/energy/power/gmrs-lenders-agree-to-rework-power-units-rs-2900-crore-loans/articleshow/9273274… 1/5
7/14/22, 1:00 PM gmr energy: GMR's lenders agree to rework power unit's Rs 2,900 crore loans - The Economic Times

The loan would be guaranteed by GMR Energy, which would later be replaced
by GMR Power & Urban Infrastructure Ltd. As per the agreement, the account
would be upgraded as standard a year after the debt recast plan is
implemented, provided the company makes timely payments, the people said.

The GMR Group did not respond to ET’s request for comment till press time The only super subscription for
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Due to a delay in the commissioning of its thermal plants, the project cost of
TOP TRENDING INDUSTRY TERMS
GMR Warora rose to Rs 4,250 crore from Rs 3,480 crore estimated earlier.
Consequently, the debt component also increased to Rs 3,188 crore as against LPG Cylinder Price Ranveer Singh Quadruplex

the initial estimate of Rs 2,610 crore, according to an ICRA rating report.

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GMR Warora is a subsidiary of GMR Energy which in turn is 53% owned by

GMR Power & Urban Infrastructure. It has fuel linkage with Coal India and a Most Popular News
power offtake agreement with distribution companies of Maharashtra and
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GMR Warora has two thermal power plants of 300mw each, located in
Maharashtra. It was acquired by the GMR Group from EMCO Energy in 2009 2. PM to launch SGX Nifty trade
at GIFT
for an undisclosed price. In 2013, GMR put it on the block to reduce group-
level debt, according to an ET report in December that year. A third person
said the group could not sell it due to differences in valuations.

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In 2016, ICRA downgraded GMR Warora to ‘D’ after it defaulted on lenders' samples
payments. The rating was upgraded to ‘BB’ the following year after the
company regularised payments.

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$620.7 bn external debt, says
its share only 21%
( Originally published on Jul 07, 2022 )

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