Lenders invoke Strategic Debt Restructuring in IVRCL

Debt-ridden IVRCL today said that its lenders have invoked strategic debt restructuring (SDR) in the company.
Amid speculation over demerger of its property development and EPC business, IVRCL yesterday said that the senior lenders of the company will meet this week under the Corporate Debt Restructuring (CDR) mechanism.
"CDR Lenders have informed the company yesterday ....That at the Joint Lenders Forum (JLF) held on November 26, 2015, the lenders have invoked SDR in the company", IVRCL had said in a filing to the BSE.
The lenders have adopted the "Reference Date" for the purpose as November 26.
It was also decided that a senior lenders meeting will be held to decide the way forward in the same.

IVRCL yesterday said that "the company is under CDR mechanism with the lenders. We understand that there are a few meetings among the lenders and there is a meeting of the senior lenders during this week."

The banks or the lenders are the major shareholders of the company holding 43.88 per cent of the equity.
The company had earlier said its lenders are deliberating on various debt conversion options under the CDR mechanism.
Strategic debt conversion option will give lenders the right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package and take control of the company operations.

The Hyderabad-based construction and infrastructure company is passing through one of its toughest business cycles over the past 12 quarters. The company has initiated a number of measures to streamline its business while restructuring its functioning.