Tata versus Mistry: Lenders hold out hope on Supreme Court verdict

While SP group sources said the verdict and debt rejig plans are unrelated, lenders said the group will be able to raise substantial sums if the SC allows it to pledge its shares in Tata Sons

Indian lenders are waiting on the Supreme Court’s judgment, expected by month end, in the litigation between the Shapoorji Pallonji Group and the Tatas and feel a verdict in favour of the former will open up new funding avenues for the construction major.

Several companies of the SP group applied for debt restructuring before the December deadline in accordance with the recommendations of the K V Kamath panel for companies affected by the Covid-19 pandemic.

In the last few months, the group flagship, Shapoorji Pallonji & Construction (SPCPL), did not make any debt repayments to lenders as the one-time restructuring process had