CNBC-TV18reported that Jindal Stainless Steel Limited will have to wait a while before it gets clarity on restructuring its INR 6,000 crore debt. JSL will have to wait for another one month before the CDR package is completed.
Sources told Ms Neha Bothra of CNBC-TV18's that the corporate debt restructuring package will be delayed by one month and will be finalized only by end November.
Sources told that this is because the Techno Eco viability report is still not completed. While the management has confirmed the delay, they say that they are very confident that the CDR package will make it through by the end of November because bankers and promoters are on the same page.
It may be noted that JSL wants interest rates to be cut by 1% to 1.5% for the overall debt that stands at INR 6,000 crore. Besides this they are also seeking for an extension in the repayment of around INR 2,500 crore from 2 years to 6 or 7 years. They also want banks to continue with the sanctions and also allow extension of phase II of Orissa project from March 2010 to March 2012.
Bankers on their part want the promoters to infuse INR 500 crore equity. The nature of this equity infusion will depend on how the markets are and how the CDR package finally shapes up. So, clearly the company could consider a global depository receipt and a rights issue or even a qualified institutional placement for that matter but that still remains to be tracked.
