Unitech defaults on Rs 38.52 cr payments to Central Bank

Realty firm Unitech has defaulted on payment of a loan installment of Rs 38.52 crore to the Central Bank of India, prompting the state-owned banker to issue public notice of default.
Unitech said that it has repaid Rs 264 crore out of Rs 300 crore loan and the remaining would be paid shortly.
In a public notice, the bank today said: "...Unitech Ltd through its directors has availed credit facilities to the tune of Rs 300 crore from Central Bank of India. The account was declared NPA (non-performing asset) on October 30, 2015".
"As on November 18, 2015, the borrower is liable to pay a sum of Rs 38,52,73,391 with further interst with effect from November 19, 2015 and other expenses/costs to the bank," the notice said.

"Despite repeated demands the borrower has failed to make any payment after October 1, 2015," it said and cautioned the people while dealing with the company and its directors.
When contacted, Unitech spokesperson said: "Unitech has already repaid Rs 264 crore out of the Rs 300 crore taken as loan. The company expects to repay the outstanding amount within a short span of time".

Stating that the Unitech's debt position remains comfortable, the spokesperson said the company is committed towards meeting its obligations towards its lenders.
Unitech is facing a liquidity crunch due to slowdown in the real estate market, particularly housing segment.

The company has been facing consumer complaints and protest due to delay in completion of some of its projects.
Earlier this month, Unitech reported a consolidated net loss of Rs 16.10 crore for the quarter ended December 31, 2015, on sharp rise in finance cost.
Its income from operations also fell by 42 per cent to Rs 408.74 crore in the third quarter of this fiscal.
Finance cost increased to Rs 84.56 crore in the October- December quarter of this fiscal from Rs 7.33 crore in the year-ago period.
Unitech's consolidated net debt as of December 31, 2015 stood at Rs 6,802.05 crore. Net debt to equity ratio was 0.64.

However, Unitech's sales bookings increased by 25 per cent to Rs 832 crore during the April-December period of the current fiscal, driven by higher sales realisation.