Macrotech Developers likely to fend off near-term debt problems: Moody's

To proceed with its proposed bond, Macrotech will first have to raise about $118 million and deposit the proceeds in an escrow account, which is a condition precedent

The proposed bond issue by Macrotech Developers (MDL), earlier known as Lodha Developers, may alleviate its near-term debt problems. However, significant debt maturities and unfavourable industry conditions will keep its refinancing risk high and liquidity weak, said a report by Moody’s Investor’s Service.

“The proposed bond transaction is subject to significant execution and market risk, including the fulfillment of a condition precedent. This will create uncertainty around MDL’s ability to complete the bond transaction as planned,” said Sweta Patodia, a Moody’s analyst.

To proceed with its proposed bond, Macrotech will first have to raise about $118 million and deposit the proceeds in