The Hindu Business Line : Lenders clear BPL debt recast package

THE Bangalore-based BPL Ltd's lenders on Friday cleared a restructuring package at a meeting of members of the corporate debt restructuring forum of banks and financial institutions.

According to an institutional source, about 90 per cent of the lenders have now agreed to implement a recast package that would involve hiving off the company's colour television into a separate joint venture with Sanyo Electric of Japan.

While lenders will take some hit on the Rs 1,400-crore debt, the rest will be rescheduled and converted into eight per cent term loans and preference shares.

The source said that UTI Bank, which has obtained a recovery order from the Debt Recovery Tribunal, was objecting to the package saying that it wanted to enforce the order.

However, the bank has reportedly come around to the fellow lenders' line.

Still, ABN Amro Bank is unwilling to subscribe to the plan. Others believe that they will be able to convince the foreign bank that the current package is the best way out.

The forum also considered the flash report of Willard India, a sugar and jute company owned by the Delhi-based Mr K.K. Bajoria.

Its debt recast is also likely to be completed in about a month.

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