Listed infrastructure firm Sadbhav Engineering is working on a debt restructuring plan for Rs 750 crore, extending the debt repayment period up to seven years. As directed by the National Company Law Tribunal (NCLT, the lenders, led by IDBI Bank, are working on the debt restructuring plan.
The company’s chief executive officer appeared before the tribunal, stating that a restructuring package had been proposed to all financial creditors and the court asked to convene a meeting of lenders, as reported by ET on July 2.
The debt restructuring process is happening under the June 7 guidelines, and the lenders and rating agency are working on the plan. There will be no haircut, and the entire debt will be payable over the seven-year timeline, a source said.
The proposed restructuring plan needs RP 4 rating, the minimum rating required for approval by the committee of creditors and is expected to be in place by next week. The total outstanding fund-based debt of Sadbhav Engineering stands at approximately Rs 750 crore.
In addition to the restructuring plan, Sadbhav Engineering is negotiating with Edelweiss Alternatives to borrow Rs 600 crore as interim finance for one year to stabilise operations for its two subsidiaries, Sadbhav Gadag Highway Private Limited and Ahmedabad Ring Road.
Ahmedabad Ring Road, a special-purpose vehicle promoted by Sadbhav Engineering through its step-down subsidiary Sadbhav Infrastructure Project Ltd., is a 76-km, four-lane ring road project financed through Rs 405 crore in term loans and equity. Recently, Acuite Ratings assigned a BB rating to the Rs 367 crore proposed non-convertible debentures of Ahmedabad Ring Road.
Similarly, Sadbhav Gadag Highway Private Limited, another special-purpose vehicle by Sadbhav Engineering, has a 9-year concession period, including a 2-year construction period. This project involves the development of State Highway 57. Acuite recently assigned a BB+ rating to the Rs 283 crore proposed non-convertible debentures of Sadbhav Gadag Highway.
