Peninsula Land Ltd, a real estate company promoted by Ashok Piramal Group, has defaulted on repayment of a loan from the State Bank of India (SBI).
The default of Rs 2.35 crore happened on November 30, 2019 on term loan of Rs 177.7 crore. The default is on payment of interest and principal component of the loan. The rate of interest is 9.95 per cent, according to company's filing with exchanges
The company's total outstanding borrowings from banks/financial institutions stood at Rs 999.7 crore as on September 30, 2019.
The company said the total financial indebtedness of the listed entity including short-term and long-term debt (as of September 2019) was Rs 1,630.65 crore, company said.
According to rating agency ICRA the company faces high refinancing risk because of its debt repayment obligations (excluding collection-linked payments) aggregating to Rs 1,167 crore in the next twelve months.
The cash-flow position of the company is severely impacted due to delays in collections of sizeable sold inventory as well as weak sales velocity in ongoing and completed projects.
Owing to weak demand in the real estate industry, the sales in many of the projects remained muted, ICRA said.