Lenders give in-principle nod to Kesoram resolution plan

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November 26, 2020 4:00 AM

BK Birla Group flagship Kesoram Industries on Wednesday said its lenders have given their in-principle approval to a resolution plan to raise funds and restructure debts.

The total debt of the company currently stands at over Rs 2,000 crore.

BK Birla Group flagship Kesoram Industries on Wednesday said its lenders have given their in-principle approval to a resolution plan to raise funds and restructure debts.

“The consortium of lenders have given its in-principle approval to the resolution plan of the company formulated under the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019, issued by the RBI vide its circular dated June 7, 2019,” the company said in a stock exchange filing. The total debt of the company currently stands at over Rs 2,000 crore.

“We are going through a settlement with the banks through a combination of debt and cash. We are doing a couple of things – probably debt can be replaced by debt. We are repaying banks with cash predominantly. An investor (US-based investment management firm) is putting in money,” a company source told FE. “We are looking at targeting the debt to around Rs 1,800-1,900 crore post the resolution,” the person said.

“The parent is working towards a resolution plan with the lenders and has signed a non-binding term sheet with a potential investor, which will enable the group to scale up its operations and meet the remaining financial obligations,” Kesoram had said in its latest annual report.

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