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Lenders approve Reliance Defence's CDR exit and refinancing plans

A consortium of lenders led by IDBI has given its approval

Jyoti Mukul  |  New Delhi 

Lenders approve Reliance Defence's CDR exit and refinancing plans

A consortium of lenders led by has given its approval to the corporate debt restructuring exit plan of and Engineering Ltd. (RDEL), a subsidiary of The lenders have also given their go-ahead for the implementation of scheme of

Both the proposals were presented to the CDR empowered group’s (EG) meeting on March 29, 2017 and were approved by the requisite majority of CDR lenders. The (RBI) had also given it nod for to exit the CDR package.



The lead lender of the consortium has also written to the Ministry of Defence confirming the approval granted by CDR group to RDEL’s plan and scheme.

The confirmation from to the ministry of defence makes eligible to participate in all the future contracts of the Indian Navy.

Now, and Larsen & Toubro are the only two private sector shipyards, which will compete with government owned shipyards for the prestigious contracts for making Submarines, Landing Platform Dock (LPD) and Corvette.

As per the scheme approved by CDR EG, about Rs 6,800 crore of debt will be refinanced with maturity of about 20 years and lower interest rate.

graph
Exiting CDR is also expected to provide increased financial flexibility to the company. RInfra has increased its shareholding in to nearly 31%.
 
RDEL's current order stands at over Rs 5,300 crore from the Navy, Coast Guard and commercial vessels.
 
Reliance Infra had acquired Pipavav Defence and Offshore Engineering Co, in March 2015, which was later on renamed as and Engineering..
 
Immediately after acquiring Pipavav, the Reliance Group had announced its plans to exit CDR. At that time, the company had said in a statement exit from the CDR would lead to improved financial flexibility and increased business opportunities for the shipyard.

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Lenders approve Reliance Defence's CDR exit and refinancing plans

A consortium of lenders led by IDBI has given its approval

A consortium of lenders led by IDBI has given its approval A consortium of lenders led by has given its approval to the corporate debt restructuring exit plan of and Engineering Ltd. (RDEL), a subsidiary of The lenders have also given their go-ahead for the implementation of scheme of

Both the proposals were presented to the CDR empowered group’s (EG) meeting on March 29, 2017 and were approved by the requisite majority of CDR lenders. The (RBI) had also given it nod for to exit the CDR package.

The lead lender of the consortium has also written to the Ministry of Defence confirming the approval granted by CDR group to RDEL’s plan and scheme.

The confirmation from to the ministry of defence makes eligible to participate in all the future contracts of the Indian Navy.

Now, and Larsen & Toubro are the only two private sector shipyards, which will compete with government owned shipyards for the prestigious contracts for making Submarines, Landing Platform Dock (LPD) and Corvette.

As per the scheme approved by CDR EG, about Rs 6,800 crore of debt will be refinanced with maturity of about 20 years and lower interest rate.

graph
Exiting CDR is also expected to provide increased financial flexibility to the company. RInfra has increased its shareholding in to nearly 31%.
 
RDEL's current order stands at over Rs 5,300 crore from the Navy, Coast Guard and commercial vessels.
 
Reliance Infra had acquired Pipavav Defence and Offshore Engineering Co, in March 2015, which was later on renamed as and Engineering..
 
Immediately after acquiring Pipavav, the Reliance Group had announced its plans to exit CDR. At that time, the company had said in a statement exit from the CDR would lead to improved financial flexibility and increased business opportunities for the shipyard.
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Business Standard
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Lenders approve Reliance Defence's CDR exit and refinancing plans

A consortium of lenders led by IDBI has given its approval

A consortium of lenders led by has given its approval to the corporate debt restructuring exit plan of and Engineering Ltd. (RDEL), a subsidiary of The lenders have also given their go-ahead for the implementation of scheme of

Both the proposals were presented to the CDR empowered group’s (EG) meeting on March 29, 2017 and were approved by the requisite majority of CDR lenders. The (RBI) had also given it nod for to exit the CDR package.

The lead lender of the consortium has also written to the Ministry of Defence confirming the approval granted by CDR group to RDEL’s plan and scheme.

The confirmation from to the ministry of defence makes eligible to participate in all the future contracts of the Indian Navy.

Now, and Larsen & Toubro are the only two private sector shipyards, which will compete with government owned shipyards for the prestigious contracts for making Submarines, Landing Platform Dock (LPD) and Corvette.

As per the scheme approved by CDR EG, about Rs 6,800 crore of debt will be refinanced with maturity of about 20 years and lower interest rate.

graph
Exiting CDR is also expected to provide increased financial flexibility to the company. RInfra has increased its shareholding in to nearly 31%.
 
RDEL's current order stands at over Rs 5,300 crore from the Navy, Coast Guard and commercial vessels.
 
Reliance Infra had acquired Pipavav Defence and Offshore Engineering Co, in March 2015, which was later on renamed as and Engineering..
 
Immediately after acquiring Pipavav, the Reliance Group had announced its plans to exit CDR. At that time, the company had said in a statement exit from the CDR would lead to improved financial flexibility and increased business opportunities for the shipyard.

image
Business Standard
177 22