Maytas Infra gets bailout from lenders
02 Jul 2009
Maytas Infra, hit hard by the scam at sister concern Satyam, has got considerable relief as 18 banks today approved the corporate debt restructuring package for the company, providing Rs100 crore as working capital as well as more time to repay loans.
State-owned and private banks have an exposure of Rs5,000 crore to Maytas Infra, the firm run by B Teja Raju, the son of jailed Satyam Computer founder B Ramalinga Raju. "The bankers will pay Rs100 crore as working capital to the company and provide Rs200 crore as bank guarantee," said Ved Jain, director, Maytas Infra.
On the company's outstanding debt of Rs1,600 crore, Jain said the banks have given more time to the company to repay loans. The company, according to the terms of the corporate debt restructuring plan, will start repaying loans after three years and have 10 years to clear its dues.
The Hyderabad-based firm has also started the process to recover inter-corporate deposits of Rs390 crore that it deposited with Satyam Computer Services, now Mahindra Satyam. Maytas Infra would now be able to execute all its current projects, besides taking up new ones with the CDR packaging, Jain added.
SBI Capital Markets was consultant to the CDR scheme. Several banks including State Bank of India, ICICI, IDBI, Hong Kong and Shanghai Banking Corporation (HSBC), Citibank NA and HDFC Bank Ltd have lent around Rs5,000 crore to the infrastructure company.
The company has an order book of around Rs8,500 crore. This excludes the Rs 12,000-crore Hyderabad Metro Rail project.
