Spanco Rs.1,300-cr recast plans facing road blocks
The Rs.1,300-crore debt recast plans of Mumbai-based IT and BPO company Spanco is facing roadblocks with the lead banker, State Bank of India, not satisfied with the company’s proposed restructuring package, a banker close to the development said.
The company, which was referred to CDR cell on January 29 seeking easier loan terms and moratorium on repayment, has still not received the requisite mandate for an admission into the CDR. An admission into the CDR cell requires the approval of at least 75% of the lenders by value, and 60% by number.
Officials from Spanco were not available for comment. The CDR cell is expected to take up the case for another round of discussion at the end of March. According to analyst reports, the company is facing liquidity constraints owing to high working capital requirements and has failed to pay salaries to many employees. It is also said to be looking to sell equity to raise funds. For the October-December 2012 quarter, the company reported a net loss of R23.38 crore as compared to a R17.31 crore net profit in the corresponding quarter of the previous year.
The total income from operations for Spanco was down 44.5% year-on-year (y-o-y) to R259.25 crore at the end of the October-December 2012 quarter. In financial year 2011-12, the company reported a net profit of R34.5 crore with a total income of R971.72 crore.
As on December 31 2012, the promoters of the company, Kapil Puri and Kavita Puri, held about
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