Lenders approve Gujarat NRE's CDR proposal

Post approval, debt has been restructured for 10 years 'door-to - door' with two year moratorium and ballooning repayment

The Empowered Group of Corporate Debt Restructuring Cell (CDR) has formally approved Gujarat NRE Coke Ltd (GNCL)’s proposal for restructuring of its debts. Post approval, the debt has been restructured for 10 years ‘door-to - door’ with two year moratorium and ballooning repayment, apart from additional need based working capital aggregating to Rs 370 crores.

The restructuring also includes a fresh term loan of Rs 50 crore for completing the ‘waste heat recovery based (WHRB)’ power plants at Dharwad in Karnataka. The cell also approved funding of interest for two years at competitive pricing and rates.

Commenting on the development, Arun Kumar Jagatramka, Chairman and Managing Director, Gujarat NRE Coke Ltd said, “The approval of the CDR package establishes the fundamental viability of our business. The package would certainly help us in realigning our debts and help revive the company.”

Jagatramka added that the company hopes to be able to achieve stability and produce tangible results which would meet the expectations of all our stakeholders.