GMR remains confident of availability of gas in years to come ensuring good performance of its Rajahmundry plant.
GMR Infrastructure Ltd. (GIL) announced the execution of a bilateral Resolution plan between its Associate Company, GMR Rajahmundry Energy Ltd. (GREL) & the GREL Lenders.
The key features of the Resolution Plan are:
• The Resolution Plan has been approved by 100% of Lenders
• The existing Debt of INR 2353 crore has been brought down to a Sustainable Debt of INR 1412 crore.
• Against above Sustainable debt of INR 1412 crore, GMR Group has already infused an amount of INR 395 crore towards meeting 20% of Principal towards repayment of the Sustainable Debt and the interest servicing obligations of GREL for the first year
• This leaves balance outstanding Sustainable debt of INR 1130 crore carrying a floating rate of 9.% p.a. are payable over 20 years.
• The Balance Debt of INR 941 crore has been converted into Long Dated Cumulative Redeemable Preference Shares (CRPS) carrying 0.1% which is repayable from 17th to the 20th year
Commenting on the development, Grandhi Kiran Kumar, Managing Director & CEO, GIL said “The first of its kind Resolution Plan offers a mutually beneficial resolution for both Lenders and the company through a long-term solution for the existing debt and related obligations of the Group. It has reduced the debt for GMR Group and we believe this will de-risk the Group substantially. This also offers quality assets built on the ground an opportunity to perform to its potential. ”
GMR remains confident of availability of gas in years to come ensuring good performance of its Rajahmundry plant and thereby meeting obligation towards both its Sustainable as well as Long dated Preference shares.
GMR believes that gas based power plants will provide peaking power support to the country’s growing non-conventional energy of Wind and Solar power, and the Resolution Plan shall be mutually rewarding to GMR Group and Lenders as they continue to own 45% and 55% of shareholding respectively.
GMR Infrastructure Limited, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure, is listed on Indian Stock Exchanges.