The Hindu Business Line : Lenders clear Maytas Infra’s CDR plan

Hyderabad, July 2 A consortium of lenders including ICICI Bank, SBI and IDBI today cleared a corporate debt restructure (CDR) package for Maytas Infra which includes immediate release of working capital, loan guarantees and moratorium.

According to the CDR package, Maytas Infra will immediately have access to Rs 100 crore working capital and additional Rs 200 crore towards bank guarantees, which will enable the company to take up works immediately and execute ongoing projects, according to Mr Ved Jain, a Government-nominee on the Maytas board.

Mr Jain told Business Line, after the board meeting today, that since the company was not in a position to service total loans of about Rs 1,600 crore, the CDR package would enable it to sail through the present crisis. In addition, the CDR plan includes three-year moratorium on the loans.

The CDR package is structured in such a way that the interest repayment too is staggered with rates of 8, 9 and 10 per cent respectively for first, second and third year. Thereafter, the interest would be on par with prevailing commercial rates.

Apart from this arrangement, the company will get another dose of working capital of Rs 100 crore after three months and Rs 200 crore towards bank guarantees required to take up new projects.

Asked about the status of the Rs 12,200-crore Hyderabad Metro Rail Project, which the company had bagged, Mr Jain said that this was being executed through another special purpose vehicle and was out of the purview of the CDR package.

“We are in talks with various stakeholders, including potential partners and its outcome is awaited,” he said.

The Maytas board has decided to recover Rs 390 crore inter corporate debt (ICD) it extended to Satyam Computer Services Ltd, and use it to discharge its debts.

It is learnt that while the Andhra Pradesh Government is now seeking additional viability gap funding from the Centre for the Hyderabad metro project, the company management hinted that they were in talks with the Anil Ambani Group for roping into the project offering them major stake.

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