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| CDR plan likely to be over by mid-March: Vishal Retail |
| Press Trust of India / New Delhi Feb 05, 2010, 18:06 IST |
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Debt-ridden Vishal Retail today said the ongoing debt restructuring exercise of the company is likely to get over by mid-March as it expects to reach an agreement with its lenders shortly.
The retailer also said that it has proposed a two-year period for repayment of Rs 735 crore debt and is ready to seek equity participation from strategic investor as well.
"We are having a joint lenders meet on February 24 and another on March 10 and by that time we should have reached an agreement on the corporate debt restructuring exercise (CDR)," Vishal Retail Chairman and Managing Director Ramchandra Agarwal told PTI.
He said the company and its lenders have covered lot of ground since the CDR process started in November last year.
"We have proposed that either the company be given a time of two years to repay the debt or be allowed infusion of funds from some strategic investors. Banks have come round to almost agreeing to the idea," Agarwal said.
Moreover, he said, "The company has been fully co-operating in the CDR process and the exercise is on track."
Vishal Retail, which operates 170 large format outlets across the country, have been reeling under the debt burden for over a year. It prompted the company's dozen odd lenders to seek CDR to streamline the debt repayment programme.
The company expects to be back in shape within a year, once the CDR decisions are finalised.
"For last more than a year we have managed without any fresh infusion of funds and despite the huge debt, our January sales this year reached Rs 88 crore, up from Rs 81 crore in January 2009. This gives us confidence that we will overcome the crisis within a year," Agarwal said.
The company has undertaken measures for cost cutting, including outsourcing its supply chain.
Agarwal also reiterated that as the Chief Promoter of Vishal Retail, he would be ready to give up part of his stake in the company to facilitate the revival of business.
"I am ready for anything which will keep our shareholders happy and help in the revival of the company," he said.
At present, Agarwal holds 63 per cent of the stake in the company and speculation has been rife for some time that its lending banks may seek dilution of his stake as part of the CDR.
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