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Lenders confirm Shapoorji Pallonji flagship debt recast

Lenders to Shapoorji Pallonji and Co. Pvt. Ltd are planning to defer principal repayments by eight quarters.

Moreover, they intend to suspend interest till September as part of a debt recast for the cash-strapped company.

Further, the terms of the recast proposal require Shapoorji Pallonji and Co. to pay the previously agreed interest. The company also needs to fully repay the principal amount.

However, the proposal is considering a debt of Rs 22,183 crore for easier payment terms.

Meanwhile, it is expected to convert promoter borrowings of Rs.2,724 crore as of 31 March 2020 into perpetual debt.

The flagship company of the Shapoorji Pallonji group approached the State Bank of India led lenders for a recast. This is after the Covid-19 pandemic disrupted business.

It aimed to raise funds by pledging through part or full monetization of its assets amounting to Rs 10,332 crore.

The company planned to utilized the proceeds from the proposed monetization of assets towards prepayment of loans. In fact, the loan amounted to Rs 9,348 crore respectively.

The SP group claimed that its 18.4 percent shareholding in Tata Sons is worth over Rs.1.75 trillion

Meanwhile, the Tata group valued that stake at less than half of that figure.

The Tata group also rejected an SP group proposal back in December 2020. This proposal was to swap its Tata Sons’ shares for stakes in listed Tata group companies.


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