GMR Infrastructure (GIL) has completed the Strategic Debt Restructuring (SDR) of GMR Chhattisgarh Energy (GCEL). GCEL, a subsidiary of the company has announced that the consortium of lenders of GCEL have adopted SDR, as provided under the scheme permitted by the RBI. Accordingly, GCEL has allotted equity shares to all the lenders.
As per the SDR scheme, out of the total outstanding debt (including accrued interest) of Rs 8,800 crore, debt to the extent of Rs 2,992 crore has been converted into equity by which the consortium lenders would have 52.4% shareholding and balance 47.6% would be held by GMR.
Post the conversion, the balance project debt stands at Rs 5,800 crore with Rs 2,992 crore equity held by lenders and Rs 2,721 crore equity held by GMR Group, resulting in the debt-to-equity ratio of 1.0x. The lower debt levels would result in improving the long term viability of the project.