PSL, which makes metal pipes, has approached bankers to rework R4,600 crore borrowings via the corporate debt restructuring (CDR) window. If approved, PSL will be among the biggest accounts recast. The CDR cell has restructured loans worth R62,897 crore between April 2012 and January 2013, a 60% jump over total loans restructured in 2011-12 of R39,311 crore.
G Gehani, director and company secretary of PSL, said: ?The company is seeking a loan recast owing to some internal and mainly external pressures caused by the policy gridlock and the slowing economic environment.?
Others in the consortium include Bank of India, Union Bank of India, Canara Bank and Indian Overseas Bank.
Gehani said PSL has received written consent for CDR referral from both lead bankers. The company now has an approval of 42% of lenders by value and the case will be taken up for discussion by the CDR cell at the end of March, he added. One of the bankers from the lenders’ consortium said the company was facing some delays in government payments and losses due to a fall in material costs.
?A couple of bankers have already formed a joint appraisal group, where we are giving some immediate relief. The CDR route can take anything up to 6 months,? the banker added. According to CDR norms, a reference to the CDR mechanism can be triggered by the corporate concerned, if supported by banks having a minimum 20% of loan exposure.
PSL which has its registered office in Daman posted Rs 505.11 crore revenues in the October-December 2012 quarter, up 0.62% over the previous year. It posted a net loss of Rs 16.07 crore compared to a net profit of Rs 6.66 crore in the same quarter of the previous year.
In 2011-12, the company posted revenues amounting to Rs 2,291 crore, down 9.5% over the previous year. Net profit in 2011-12 was down 28% to Rs 54.16 crore.
Some of the largest loans being recast by the CDR cell includes GTL at Rs 16,000 crore, Suzlon (Rs 11,000 crore), Jindal Stainless (Rs 9,000 crore), Bharti Shipyard (Rs 5,800 crore( and Hotel Leelaventure (Rs 4,300 crore).
The CDR cell has admitted a staggering Rs 59,600 crore worth of stressed loans in this financial year between April 2012 to January 2013. More cases are expected to come in by the year-end even as the central bank ushers in a more stringent restructuring regime from April 2013. The cell admitted loans of Rs 67,088 crore in 2011-12.
PSL manufactures and supplies pipes to oil, gas and water transmission as well as structural and piling applications for onshore and offshore sectors.
Reliance Capital Trustee held 8.96% in PSL on January 31, 2013 while Bajaj Allianz Life Insurance had 3.77% as on December 31, 2012. The managing director of PSL, Ashok Punj, held 9.23% stake in the company as of 31 December, 2012.
As on Thursday, the company had a market capitalisation of Rs 223 crore. Promoters hold 39.37% in the company, institutional investors 13.28% and others hold 47.35%. The stock closed at Rs 41.95 down 0.24% on Thursday on the BSE.
