Shapoorji Pallonji Group Secures Approval to Defer Rs 1,800 Crore Interest Payment
The Shapoorji Pallonji (SP) Group has recently received the green light from its lenders to postpone an interest payment of Rs 1,800 crore. This outstanding interest is linked to non-convertible debentures (NCDs) amounting to Rs 14,300 crore, which were issued on December 31 of the previous year. Originally, this substantial interest payment was scheduled for September 30.
Details of the NCDs and the Involved Parties
According to sources close to the situation, the approval to defer the payment was granted by lenders last week. In June of last year, Goswami Infratech, a subsidiary of the Shapoorji Pallonji Group, raised Rs 14,300 crore through a series of zero-coupon NCDs. Notable investors in this undertaking include prominent firms such as Cerberus Capital, Varde Partners, Canyon Capital, and Davidson Kempner, along with existing lenders like Deutsche Bank and Edelweiss Special Opportunities Fund.
Financial Context and Strategic Moves
With an impending obligation of approximately Rs 1,800 crore for these NCDs due by September 30, reports indicated that Shapoorji Pallonji Group was exploring avenues to obtain around Rs 2,000 crore from its lenders to meet the payment obligations, should the deferment not be approved. This strategic financial planning highlights the group’s proactive approach in navigating its fiscal responsibilities.
Reasons for the Deferred Payment Request
The request for an extension on the payment deadline arose as the divestment of certain assets was taking longer than anticipated. Notably, the sale of Gopalpur Port and the planned initial public offering (IPO) of Afcons Infrastructure, a group company, has experienced delays. Earlier in January, the group successfully sold Dharamtar Port to the JSW Group, using Rs 250 crore from that transaction to partially fulfill obligations to NCD holders.
Conclusion
This deferment by Shapoorji Pallonji Group marks a significant moment in its financial strategy, reflecting both the challenges and opportunities faced in the current economic landscape. As the group continues to navigate its asset sales and seek further liquidity solutions, stakeholders will be keenly observing the developments to ensure that obligations are met without further complications.
