Comments
Billionaire Anil Agarwal-led Vedanta has reported that its promoters have repaid $150 million of loan and released the pledged shares of the company on Tuesday.
Deutsche Bank AG and Barclays Bank PLC had entered into an agreement last June with Twin Star Holdings, Vedanta Resources and Welter Trading to lend $150 million. The borrower has repaid and the encumbrance has been released, said the company in a statement on Tuesday.
Negative outlook
Last Friday, rating agency Moody’s Investor Service had downgraded the corporate family rating of Vedanta Resources to Caa1 from B3 earlier over increasing refinancing risks in debt maturities. The outlook for the rating remains negative, it had said.
The negative outlook reflects Vedanta Resources’ sustained weak liquidity profile and Moody’s concerns over the company’s ability to address its imminent cash needs, it said. Ongoing delays in Vedanta Resources’ refinancing efforts and its continued reliance on dividend receipts are depleting liquidity at its operating subsidiaries, Moody’s said.
Concerns over Vedanta’s debt repayment liabilities surfaced after the government opposed the proposed sale of the international zinc business to Hindustan Zinc. Earlier, S&P Global Ratings stated that the company’s credit ratings might “come under pressure” if it is unable to raise $2 billion or sell its international zinc assets.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.