Omaxe for rescheduling over half of its debt

New Delhi-based developer Omaxe said it was in talks with banks and other lenders to restructure more than half its debt in a bid to reduce cost and match payments with cash flows.

Omaxe CMD Rohtas Goel said the realty major was seeking to restructure as much as Rs 900 crore worth of debt and expects a favourable verdict in the next two weeks. It has Rs 1,513 crore of debt on its books. After the restructuring, the company expects cost of funds on outstanding loans to drop by as much as 150 bps. The realtor’s average cost of funds is around 14 per cent, he added.

Omaxe, which plans to launch its affordable housing project in Indore this month, said it needs to repay about Rs 85 crore of debt by March 31. In FY10, the company will need to repay Rs 300 crore. The firm, which has postponed implementation of several of its project by at least two years, has also witnessed 5-10 per cent defaults on customer advances.