GMR Rajahmundry Energy Limited (GREL), a subsidiary of GMR Infrastructure Limited {GIL) has announced that considering the absence of long term Fuel Supply Agreement (FSA) and long term Power Purchase Agreements (PPA), the consortium of lenders of GREL have adopted the Strategic Debt Restructuring Plan (SDR), as provided under the scheme permitted by the RBI. Accordingly, the company in its meeting held today has issued equity shares proportionately to all the lenders.
As per the SDR scheme, out of the total outstanding debt (including overdue interest) of Rs 3, 780 cr, debt to the extent of Rs 1 ,414 cr has got converted into equity by which the consortium lenders would have 55% shareholding and balance 45% would be held by GMR.
Post conversion, balance debt of around Rs 2,366 cr would be having repayment period of 20.5 years comprising of moratorium of 1. 75 years and interest rate of 10.75%. After SDR, the total equity in the project would be Rs 2,571 cr resulting in the debt-to-equity ratio of 0.9x.
The lower debt levels coupled with reduction in interest cost would result in improving the long term viability of the project.