Senior rupee term-lenders and foreign currency/deferred payment guarantee banks would receive these instruments at par, subject to a minimum of Rs 525 crore, say sources. The Oil and Natural Gas Corporation (ONGC) has also agreed to the conversion of a maximum of Rs 365 crore of rupee term-debt which will be 20.8 per cent of MRPL equity post-restructuring being converted into equity share capital.
ONGC has already agreed to infuse up to Rs 600 crore in MRPL and will hold a minimum of 51 per cent equity stake in the company.
ONGC chairman and managing director Subir Raha did not offer any comment on the restructuring. Mr Raha said banks and institutions are yet to ratify the proposal and that it would not be appropriate to say anything at this juncture.
As per the debt-for-equity swap being worked out, senior rupee term-lenders and deferred payment guarantee banks will receive a minimum of Rs 400 crore and Rs 125 crore of these instruments, respectively.
As per the restructuring, preference share capital exchanged at par will carry a coupon rate of 0.01 per cent per annum redeemable in two equal installments at the end of nine and ten years. zero-coupon bonds too shall be exchanged at face value in two equal installments at the end of nine and ten-years.
Of the total debt of Rs 4,375.44 crore to be restructured, the rupee term-debt amounts to Rs 2,388.41 crore with the foreign currency loan component at Rs 848.26 crore.
Other debt to be restructured includes foreign currency suppliers credit of Rs 360 crore.
Unsecured bank and financial institutional debt stands at Rs 53.17 crore with long-term working capital loans at Rs 533.01 crore.
Interest accrued and due from MRPL is Rs 192.54 crore.
This excludes the compound interest, penal charges and liquidated damages, which is believed to have been waived as per the agreement.
As per the senior rupee term-debt repurchase programme (DRP), MRPL will deploy 100 per cent of ONGCs equity injection to redeem, on a non-mandatory basis, senior rupee term-debt at a price of 75 per cent of the principal from those senior rupee term-lenders who participate in the arrangement. Further, ONGCs equity injection not utilised for the DRP will be used for senior rupee term-debt prepayment.
ONGC has also requested concessions from MRPLs foreign currency debt holders and deferred payment guarantee banks. The concessions asked for include reduction in deferred payment guarantee commission to 0.75 per annum on the outstanding principal amount and next one years interest payment.