Ifci, Finance Ministry In Talks On Cash Flow Problem

IFCI Ltd executives today held discussions with finance ministry officials on possible solutions to its cash flow problems.

Though details of what transpired at the meeting could not be ascertained, the institution maintained that it would clear the outstanding dues over the next few days.

IFCI is to pay around Rs 210 crore over the next few days after it decided to exercise a call option on a part of the Rs 708-crore bond issue privately placed in 1996.

While it had to redeem bonds worth Rs 295 crore this month, the institution decided to exercise the call option on the remaining amount as part of its strategy to retire high-cost debt.

 

Though Rs 200 crore of the Rs 410-odd crore has already been paid, the institution is negotiating with investors to reinvest the remaining amount.

IFCI chairman PV Narasimham said the institution will generate funds internally to meet the redemption needs.