GMR Chhattisgarh Energy allots majority shares to lenders in debt restructuring

GMR Chhattisgarh Energy Limited (GCEL), a subsidiary of GMR Infrastructure Limited (GIL) has announced that a consortium of lenders of GCEL has adopted Strategic Debt Restructuring Plan (SDR), as provided under the scheme permitted by the RBI.

Accordingly, GCEL has allotted equity shares to all the lenders, a GMR Infra release stated.

As per the SDR scheme, out of the total outstanding debt (including accrued interest) of Rs8,800 crore, debt to the extent of Rs2,992 crore has been converted into equity by which the consortium lenders would have 52.4 per cent shareholding and balance 47.6 per cent would be held by GMR, the release stated.

With GMR Group holding equity of Rs2,721 crore and lenders holding equity of Rs2,992 crore post conversion, the balance project debt stands at Rs5,800 crore - a debt-to-equity ratio of 1.0x. The lower debt levels would result in improving the long-term viability of the project.

Fully commissioned in March 2016, GCEL is a 1,370 MW (2x685 MW) coal-based power plant at Tilda in Chhattisgarh. The project has long-term fuel security in the form of two captive coal blocks and is currently operating under short term PPAs through exchange and bilateral routes.

GMR Group is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure. The group has 15 power generation projects, nine operating road assets and a double rail track line of eastern dedicated freight corridor under development.

GMR Group developed and operates India's busiest and currently world's No1 Indira Gandhi International Airport in New Delhi and greenfield Rajiv Gandhi International Airport at Hyderabad.

GMR Infrastructure in partnership with Megawide Construction Corporation is developing Mactan Cebu International Airport (MCIA) in Philippines.

The Group is also developing two Special Investment Regions at Krishnagiri and Kakinada and India's largest Smart Airport City near Hyderabad International Airport.