Bangalore, March 19
THERE is some more cheer for the beleaguered BPL Group with the corporate debt restructuring (CDR) cell approving the recast plans of one more group company.
This time, BPL Engineering Ltd's Rs 100-crore debt recast has got past the CDR cell with over 75 per cent of the creditors backing the restructuring plans, informed sources said.
The company has received a communication from the cell in this regard.
The company, primarily into production of compressors, TV components and washing machine motors, has debt exposure to 14 financial institutions led by IDBI-SASF.
As per the CDR package, the company will benefit from softer interest regime with rates falling from 14 per cent to nearly 7 per cent, and a longer debt repayment period of 10 to 13 years.
"Though there are no major waivers, the company stands to benefit from better cash flow," sources said.
BPL Engineering reported top line revenues of Rs 110 crore in the last financial year. Sources said the company, which is among the top two domestic compressor suppliers with a plant located in Hyderabad, has a healthy order-book position and has also embarked on commercial trial orders to European markets.
The company, over the years, has looked at reducing its dependence on revenues from within the group, attempted to build an order-book from the consumer durables industry at large, as the TPG Nambiar family, which manage BPL Group, remains bullish about the prospects of the components business in the future.