Fraud-hit CG Power to sell properties by FY21, use proceeds to repay debt

The proceeds from the sale (land and CG House) are likely to be used for repaying part of its debt and meeting its working capital requirements

Fraud-hit CG Power and Industrial Solutions (CG Power) is planning to complete the sale of its Mumbai land parcel by March 2020 and CG House by the following financial year, the company has informed its rating agency.

“As per the management, the company also aims to complete the sale of its land parcel in Kanjurmarg by end-January 2020 while the sale of CG House is likely to be completed by the first half of FY2021,” India Ratings said in its note while downgrading the company’s ratings from BBB+ to B on Friday on corporate governance issues.

The proceeds from the sale (land