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The consortium of lenders who had approved a Corporate Debt Restructure package to IVRCL have decided to exit the CDR mechanism.
In a regulatory filing made to the BSE, the Hyderabad-based construction and infrastructure company said it received communication from Corporate Debt Restructuring Cell informing that the lenders have decided to exit the CDR mechanism, which was extended to the company to facilitate its turnaround, bringing down the interest rate and extending moratorium on loans.
Subsequently, the lenders had also invoked the provision of the Strategic Debt Restructure. They also converted some of the debt into equity to pave way for divestment of some of the matured assets, to ease up the debt burden on the company.
The decision to back out from the debt restructure comes after the CDR empowered group held a detailed meet deliberating with the lenders on the way forward. The empowered group approved the exit of the lenders from the account of the company from the CDR package.
The lenders have attributed this to failure of the CDR mechanism.
The woes of the company continue to mount after an under construction flyover on Kolkata collapsed leading to death of 27 people.
Earlier this year, the long pending proposal of the Tata group entity TRIL, which had struck a deal with IVRCL to buyout its three tollways in Tamil Nadu, failed and the company decided to back out. This also added to already piled up woes of IVRCL.
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