MMTC gains after lenders approve debt restructing

MMTC rose 3.25% to Rs 60.40 after the company's lenders led by State Bank of India approved moratorium on loans and interest repayment.

On 8 June 2021, the board of directors of the company approved the implementation and signing of necessary documents regarding outstanding existing financial assistance/credit facilities restructuring scheme approved by banks of MMTC.

Under the said scheme, the company has received moratorium/deferment on recovery of interest for credit facilities upto December 2021/March 2022 and for principal upto March 2022 by different banks.

The final settlement is envisaged out of divestment proceeds of Neelachal Ispat Nigam (NINL). It may be affected by cases/ Anglo Coal, government directives and Covid-19 pandemic situation etc.

"Requisite information/records were shared with banks and subsequently, the company/banks have signed the master debt resolution agreement, transfer & retention account agreement and other necessary documents thereto, on 8 June 2021," MMTC said in a exchange fling.

MMTC is principally engaged in export of minerals and import of precious metals, non-ferrous metals, fertilizers, agro products, coal and hydrocarbon etc.

The company reported a consolidated net loss of Rs 52.22 crore in Q3 FY21 as against net profit of Rs 12.85 crore in Q3 FY20. Net sales during the quarter increased by 38.8% YoY to Rs 11514.36 crore.

Powered by Capital Market - Live News