Kuantum Papers prepays Rs 102 cr of restructured term loans

Kuantum Papers announced that in view of better than envisaged business operations and healthy cash flows, the Company had prepaid the entire FITL of Rs. 36 crores in September 2022 which was otherwise repayable up to FY 2029-30 and had further prepaid term loans of Rs. 105 crores in December 2022.

Pursuant to the continuous healthy cash flows, the company has further prepaid an amount Rs. 102 crores of the restructured term loans in the 3rd week of March 2023. This is in addition to the regular repayments due after the moratorium of 2 years ended on 31 August 2022.

With this prepayment of Rs. 102 crore, the total payment along with the FITL payments made in September 2022 and prepayment of Term Loans in December 2022 as also with regular repayments due after the moratorium of 2 years ended on 31 August 2022 amounts to Rs. 257 crore which is equivalent to 43.4% of the restructured debt to the Banks and is far excess from repayment of 30% of the restructured debt in terms of the provisions of RBI circular of 6 August 2020 which enable the Banks to reverse the entire provision of 10% made upon implementing the Resolution Plan.

Furthermore, it is pertinent to mention that had the company not availed the abovesaid Resolution Plan, the outstanding restructured debt as per the original repayment schedule would have been Rs. 398 crores whereas the present outstanding of the said debt is only Rs. 336 crore which is substantially lower.

Accordingly, the company has requested the lenders for classification of account as 'Standard' from the current classification of Non-CDR Standard Restructured.

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