New Delhi: Lenders to Jindal Steel and Power Ltd (JSPL) have approved refinancing of loans worth Rs 2,500 crore, sources said. "JSPL was talking to its lenders (banks) for the last two months and they have agreed to refinance loans worth Rs 2,500 crore of the company," they added.
Talks are on to refinance more loans under the Reserve Bank (RBI) scheme, they said. For 2014-15, the Naveen Jindal-led JSPL, with interests ranging from power and steel to cement, had a consolidated net debt of Rs 42,929 crore against a net debt of Rs 35,419 crore in 2013-14.
When contacted, a JSPL spokesperson said: "JSPL has an excellent track record of meeting financial commitments and has met its financial commitments till November-December 2015.
"We are in discussion with banks, in respect of the 5/25 scheme and also exploring various options with all lenders to reschedule payments considering likely short/medium term cash flow mis-matches. When these are completed, there will not be any overdue situation."
As part of monetisation and debt reduction plans already advised, we are looking at various options diligently to meet our debt obligations and strengthen our balance sheets, the spokesperson added. In the last few month there has been concerns in the market over the firm's huge debt burden, which was further exacerbated following a credit rating downgrade by Crisil in February.
Last month, in a bid to avoid "likely" short and medium term "cash flow mis-matches", JSPL said it is exploring options with lenders to reschedule payments. The Group has said it is trying to bring cash into the company through divestment of assets and strategic collaborations through JVs that will add to its cash flows and also result in reduction in bank borrowings....