gmr: GMR lenders agree to rework Rs 2,900 crore loans from power unit

Lenders have agreed to restructure ₹2,900 crore in loans to GMR’s power generation unit, GMR Warora Energy, in what would help the group remove the non-performing account tag, two people briefed have said of development. An NPA tag makes it difficult for a company to raise new funds or make an acquisition under the Insolvency and Bankruptcy Code. Plus, sometimes it’s hard to win government contracts, the people said.

GMR Warora had defaulted on interest payments on its loans and bonds last year. The power unit has a total debt of ₹2,913 crore, of which 81% is considered a durable part. The balance of the loan is unviable and will be replaced with low coupon non-convertible debentures in accordance with the agreement with the lenders.

The durable part of ₹2,351 crore would be repaid in quarterly installments by March 2037, one of the people said. The unsustainable part of ₹562 crore would be paid by September 2037, the person added.

The loan would be guaranteed by GMR Energy, which will then be replaced by GMR Power & Urban Infrastructure. The account would be updated as standard one year after the debt overhaul plan is implemented, provided the company makes the payments on time, the sources said.

GMR Group did not respond to ET’s request for comment by press time on Thursday.

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