GMR lenders agree to restructure energy subsidiary's loan

As per the resolution plan, GMR Warora will repay the sustainable as well as unsustainable debt based on the revised payment schedule. The existing working capital facilities of Rs 580 crore which has been sanctioned by the WC consortium led by Axis Bank, will continue to be in place.

The interest rate on the company's sustainable debt worth Rs 2,350 crore will be revised to 8.5 percent per annum and will be linked to the Marginal Cost of Lending Rates (MCLR) while unsustainable debt, including accrued interest worth Rs 788 crore will have an interest rate of 0.01 percent per annum.

The total loan amount will now be repaid over a period of 15 years, which is higher by seven years from the existing repayment schedule.

GMR Warora was an Special Purpose Vehicle (SPV) of the GMR group to develop a 600 MQ domestic coal-based thermal power plant in Maharashtra. Delays in commissioning meant project costs jumped to Rs 4,250 crore from the initial Rs 3,480 crore. The SPV defaulted on interest payments on its loans and bonds last year.

The GMR Group acquired GMR Warora from EMCO Energy in 2009 for an undisclosed price.

GMR Infra demerged the airport business in January this year as part of its rejig plan to simplify the corporate holding structure. It also guided to bring corporate debt down to zero, without specifying any timeline for the same.

GMR Infra hits 10-year high as firm demerges Power and Urban Infra unit from airport business