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| TPG proposes to buy stake in Vishal Retail |
| Press Trust of India / New Delhi Feb 08, 2010, 18:34 IST |
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Debt ridden Vishal Retail today said global private investment firm TPG has proposed to buy stake in it, which is subject to approval by its lenders.
The retailer had initiated a corporate debt restructuring (CDR) exercise in November last year and proposed a two-year period for repayment of Rs 735 crore debt. Its CDR is likely to get over by mid-March.
In a filing to the Bombay Stock Exchange it said the company's debt restructuring mechanism is being reviewed by a CDR cell and few meetings have happened and a consensus is still awaited.
"Under the CDR mechanism, TPG has given a proposal to the CDR cell and the same has to be approved by all participating banks under CDR and also the CDR cell. This at a nascent stage at the moment," Vishal Retail said
According to a media report, TPG is eyeing a majority stake in the debt ridden retailer and has made a Rs 250-crore offer for the stake held by Vishal Promoter and Chairman Ram Chandra Agarwal before the CDR cell.
Vishal Retail, that currently operates 170 large format stores across the country, was one of the worst hit retailers due to the economic downturn and had stopped expansion plans since the past one year.
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