CDR PACKAGE APPROVED FOR MAYTAS INFRA
Hyderabad, June 20, 2010: The Corporate Debt Restructuring (CDR) Cell has approved the debt restructuring proposal for IL&FS Engineering and Construction Company Limited. The CDR package has been approved with supermajority by the banks
The Provisional Letter of Approval has been approved by the Board of Directors of IL&FS Engineering and Construction Company Limited in its Board meeting dated June 19, 2010. The final Letter of Approval is expected to be issued shortly
The approval of the CDR package enables IL&FS Engineering and Construction Company Limited to bring the overall debt in the company to a sustainable level and at a reasonable pricing. The package will support IL&FS Engineering and Construction Company Limited in its ongoing strategic and operational initiatives to strengthen the business model and cash flows of the company
The overall debt on the Balance Sheet of Maytas Infra would come down from over Rs 1800 crs to around Rs 800 crores. This is through a mix of One Time Settlements with a few banks, Conversion of debt into Preference shares and restructuring the composition and structure of the debt. At the same time, Banks have opted to convert part of the debt into Equity to partake in the economic benefits from the turnaround of the company and induction of IL&FS. In view of the background circumstances to the Maytas Infra, the Banks have waived the Right of Recompense : a special dispensation in the package. Post restructuring, there will be an overall improvement in the financial leverage of the company
IL&FS Engineering and Construction Company Limited will be working closely with the Banks to finalise the Master Restructuring Agreement and this will place IL&FS Engineering and Construction Company Limited in a better position to attract customers, vendors and partners and would pave the way for sustainable growth.