Murugappa Group signs agreement for settling CG Power's dues, loan recast

Says CG Power's resolution of outstanding obligation towards its lenders has been completed by upfront payment of Rs 650 crore to lenders as compromise settlement

CG power's promoter Murugappa Group has signed a definitive agreement for settlement of lender dues and restructuring.

On November 21, TII informed the stock exchanges about the execution of requisite binding agreements, including Master Implementation-Cum-Compromise Settlement Agreement (Agreement) dated November 20, by CG Power, the Company and the lenders of CG Power, for one-time settlement and restructuring of funded facilities and guaranteed debt of CG Power. 

TII informed the BSE today that pursuant to the terms and conditions of the agreement, CG Power's resolution of outstanding obligation towards its lenders, in accordance with the terms set out in Reserve Bank of India (Prudential Framework for Stressed Asset) Directions, 2019, has been completed by payment of the upfront consideration of Rs 650 crore to the Lenders as compromise settlement.

A counter guarantee has also been submitted for non-fund based facilities extended by the lenders to CG Power, and towards issuance of five-year unrated, unsecured, unlisted, non-convertible debentures aggregating to Rs 200 crore.