Ex-BofA veteran overseeing Vedanta Group's restructuring steps down

By Anto Antony and Dinesh Nair

Omar Davis, a veteran banker who was overseeing the restructuring of Vedanta Group, has left the metals conglomerate within a year of taking the role, dealing a fresh blow to its efforts to reduce a multibillion-dollar debt load, people familiar with the matter said.

Davis, who was named as president for strategy at Vedanta Resources Ltd. last year, was working closely with the group’s lenders and shareholders to oversee its mega overhaul announced in September, they said, asking not to be named as the information isn’t public. The group had clinched a deal with creditors in January to extend the maturities of three dollar bonds.

The resignation may impact mining tycoon Anil Agarwal’s plans to separate India units Vedanta Ltd. and Hindustan Zinc Ltd. into several legal entities to simplify a complex financial structure and raise funds. Davis, who spent almost two decades with Bank of America Corp. before joining Vedanta, is one of the most senior bankers covering the mining sector and was helping Agarwal with the overhaul.

A spokesperson for Vedanta Group didn’t immediately respond to a request for comment. Davis declined to comment.

Vedanta Resources plans to slash its debt by $3 billion over the next three years and reduce the standalone borrowings to less than $3 billion, according to a March 20 exchange filing. The London-based parent plans to deleverage without increasing debt at unit Vedanta Ltd., it said.

The plan to restructure the businesses is still fraught, and hinges on shareholder, lender and regulatory approvals. A key complication could also be the group’s use of its own stock in Vedanta Ltd. and in key cash-generating unit Hindustan Zinc to secure debt.

Shares of Vedanta Ltd. rose 3 per cent at 9:20 am in Mumbai trading on Thursday, while that of Hindustan Zinc gained 2.6 per cent, to the highest level in eight months.