Lockdown blues: Tata Power, JSW Steel among companies that have applied for loan moratorium

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Published: April 25, 2020 12:15 AM

The list consists of 320 companies from across sectors such as textiles, food processing, healthcare, metals, travel & tourism, finance, hospitality, real estate, power, roads & tollways, gems & jewellery and tea production.

Among realtors that have applied for a moratorium are Sobha, Prestige Estates and Embassy Property Developments. Kalyan Jewellers has also asked for a moratorium.Among realtors that have applied for a moratorium are Sobha, Prestige Estates and Embassy Property Developments. Kalyan Jewellers has also asked for a moratorium.

Tata Power, Piramal Enterprises and JSW Steel are some of the large companies that have applied for loan moratorium on term loans or working-capital interest, showed a list of such companies released by rating agency Icra.

The list consists of 320 companies from across sectors such as textiles, food processing, healthcare, metals, travel & tourism, finance, hospitality, real estate, power, roads & tollways, gems & jewellery and tea production.

In the travel and hospitality segments, two of the applicants are Air India Express and TajGVK Hotels & Resorts. Among financiers, Centrum Financial Services, CreditAccess Grameen, Indostar Capital Finance, Spandana Sphoorty Financial and Piramal Capital & Housing Finance have sought moratorium, as have power producers like Jindal Power and SKS Power Generation (Chhattisgarh) and Tata Power Renewable Energy. Among realtors that have applied for a moratorium are Sobha, Prestige Estates and Embassy Property Developments. Kalyan Jewellers has also asked for a moratorium.

Icra put out the list as part of the disclosure requirement specified by the Securities and Exchange Board of India (Sebi). The document lists the entities rated by the agency that have sought a moratorium on payments from their lending institutions as part of the Covid-19 regulatory package announced by the Reserve Bank of India (RBI) on March 27 and where the approval from the lending institutions was received either after the original due date or is still pending to be received.

“As highlighted by ICRA in one of its earlier publications, missed payment by these entities even in the case of pending formal approval from the Lending Institutions prior to the original due date, is not considered an instance of Default,” the rating agency said in the document, adding that non-recognition of default in these cases is as per the guidance provided by the Sebi circular.

“However, it may be noted that for the entities that are yet to receive an approval for the moratorium from their Lending Institutions, if the same is not received in due course, ICRA would review its stance on default recognition,” Icra said.

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