The Hindu Business Line : Haldia Petro sends debt restructuring plan to IDBI

Sources said that if the proposal was accepted by IDBI and other lenders, it would form the basis for further negotiations under the corporate debt restructuring (CDR) mechanism formulated by the Reserve Bank of India. The HPL board has already discussed the CDR mechanism at the meeting held in New Delhi earlier this month.

The CDR clock, which lays a 90-day deadline for clearance of the proposal in the first round, will start ticking once a reference is made to the CDR Cell in which representatives of IDBI and the bankers will have a presence.

"The presence of executives of HPL or GAIL will be by invitation only", sources said, adding that GAIL was also likely to be sent a copy of the proposal. The proposal has already been sent to the State Government, which now holds the majority stake in HPL in which Dr Purnendu Chatterjee and the Tatas are also partners. HPL's debt now stands at about Rs 4, 200 crore and its annual debt service obligation is about Rs 500 crore.

Although the company has a positive operational margin (which is expected to touch Rs 600 crore this fiscal), its bottomline is bleeding heavily because of the pile of debt it is sitting on. Its equity is Rs 1,153 crore.

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