Maytas Infra CDR gets banks' nod

The lending institutions of Maytas Infra have finally given their nod to the corporate debt restructuring (CDR) package prepared by SBI (SBIN.NS : 2205 +65.75) Capital Markets.

The 18 banks, which have exposure to the company, have also come forward to extend Rs 100-crore loan towards working capital requirements and another Rs 200 crore towards bank guarantees immediately. And yet, again in three months, they will offer loan of Rs 100 crore towards working capital and Rs 200 crore towards bank guarantees.

Speaking to FE, Ved Jain, government nominated director on the board of Maytas Infra said, "Banks have approved our CDR package. They have agreed for a three-year moratorium, during which the company would have to pay only the interest component. The interest rates have been reworked as 8%, 9% and 10% in the first, second and third year. Post the grace or moratorium period, the debt has to repaid at the prevailing commercial rate", adding the debt repayment tenure would be seven years post the moratorium period, with quarterly payment schedule. The board is confident that Maytas Infra will become healthier in a matter of three years and will be able to repay debt at the commercial rate, he said. Maytas Infra has an outstanding debt of Rs 1,600 crore.