CDR cell to take up 3 recast cases; may okay Senvion sale

By: and |
Mumbai | Published: March 14, 2015 12:14:08 AM

The corporate debt restructuring (CDR) cell will take up three cases at its next meeting. The cell will consider loan...

The corporate debt restructuring (CDR) cell will take up three cases at its next meeting. The cell will consider loan recast proposal of Pipavav Defence and Offshore Engineering’s  R12,000-crore debt, Adhunik Metaliks’ R3,500 crore and MSP Steel’s R1,020 crore, said two bankers.
The cell will also deliberate on giving approval to the euro 1-billion sale of Suzlon Group’s subsidiary Senvion.

On March 9, ADAG Group’s Reliance Infrastructure had announced acquiring an 18% stake in the loss-making Pipavav Defence. The deal was valued at R819 crore. This will be followed by an open offer pegged at R66 per share. Pipavav’s shares, which closed at R63.85 before the announcement was made, fell 4% on March 10. The stock lost another 4% on BSE on Friday to close at R60.55.

At the last CDR meeting on March 9, banks could not reach a consensus on approving the defence company’s aid package with only 54% lenders by value approving the recast. For restructuring to take place, at least 75% bankers by value and 60% bankers by number must support the proposal.

Pipavav, which has been reporting loss in the last two quarters, reported a loss of R70.22 crore on revenue of R250.96 crore in Q3FY15. The company has a net debt of R5,480 crore at the end of FY14, according to Bloomberg data.

Adhunik Metaliks’ debt along with two of its subsidiaries Orissa Manganese & Minerals and Zion Steel will be a part of the package, said a senior banker with a public sector bank. The company had a net debt of R2,552.93 crore at the end of FY14, according to Bloomberg data. The Odisha-based company’s Q3FY15 net sales stood at R162.36 crore, a fall of 62.5% y-o-y. It posted a loss of R116.03 crore compared with a profit of R4.44 crore in the corresponding quarter in FY14. It had posted a net profit of R31 lakh in FY14. Adhunik’s promoter and promoter group holds 64.71% stake in the company, according to shareholding pattern at the end of December 2014.

Wind turbine maker Suzlon, which reached CDR cell in 2013, announced the sale of German subsidiary Senvion to the US-based private equity fund, Centerbridge Partners, on January 23. Banks had pressured the company to go for a sale after plans to get the subsidiary listed did not pan out, said two bankers with knowledge of the discussions.

The Kolkata-based MSP Steel & Power manufactures steel products and has manufacturing facilities in Jamgaon and Raigarh in Chattisgarh. Promoter and promoter groups hold 71.9% stake in the company, according to shareholding pattern at the end of December 2014.

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