Maytas Properties to go for debt restructuring

Written by Neha Pal | New Delhi | Updated: Jul 22 2009, 05:13am hrs
Following footsteps of the sister concern Maytas Infra, Maytas Properties is also planning to go in for corporate debt restructuring (CDR).

The government-nominated director on the board of Maytas Properties Ved Jain told FE, We are talking to the prime lending banks like State Bank of India, State Bank of Hyderabad, IDBI Bank to give us funds. We are ready to pledge our assets and raise funds. We are hopeful that by the end of July, we are able to draw a plan for being in a position to raise funds for the cash-starved Maytas Properties.

Jain said the company is facing a liquidity crunch at present which is why the projects have got stuck. He said the lenders are apprehensive about their investments in the company and further money is not floating in.

One of the major projects of Maytas Properties is Rs 1,100 crore Maytas Hill County, which is a residential as well as commercial real estate project from which the company had collected Rs 654 crore through sale of residential property.

Maytas Infra has recently got the CDR package approval from 18 banks after which the company has become stable in its operations. We want to draw a similar plan in case of Maytas Properties where we are able to raise funds from banks for the timely execution of our projects, said Jain.

Jain further said being a government nominated director; his foremost objective is to restore the confidence of investors. We have taken several steps in the past for building public confidence such as creating an escrow account for the investors of the Hill County project to make sure that their investments are routed only in the right direction which is the construction work of the project, said Jain.

The banks had become watchful of their loans granted to the two Maytas companies after the Satyam revelations were made by Ramalinga Raju and were also considering review of their exposures in the two companies.