gmr energy: GMR lenders agree to rework Rs 2,900 crore loans from power unit

Lenders have agreed to restructure Rs 2,900 crore in loans to GMR’s power generation unit, GMR Warora Energy, in what would help the group remove the non-performing account tag, two people briefed have said. of development.

The NPA label makes it difficult for a company to raise new funds or make an acquisition under the Insolvency and Bankruptcy Code. Plus, sometimes it’s hard to win government contracts, the people said.

The GMR Group has diversified interests ranging from airports to energy and roads. GMR Warora had defaulted on interest payments on its loans and bonds last year.

The power unit has a total debt of Rs 2,913 crore, 81% of which is considered a durable part. The balance of the loan is unviable and will be replaced with low coupon non-convertible debentures in accordance with the agreement with the lenders.

The durable part of Rs 2,351 crore would be repaid in quarterly installments by March 2037, one of the people said. The unstable part of the Rs 562 crore would be paid by September 2037, the person added.

The loan would be guaranteed by GMR Energy, which would later be replaced by GMR Power & Urban Infrastructure Ltd. Under the agreement, the account would be upgraded to standard one year after the implementation of the debt overhaul plan, provided the company makes timely payments. , people said.

GMR Group did not respond to ET’s request for comment by press time on Thursday.

Due to a delay in the commissioning of its thermal power plants, the cost of GMR Warora’s project has risen to Rs 4,250 crore from Rs 3,480 crore estimated earlier. Consequently, the debt component also increased to Rs 3,188 crore from the initial estimate of Rs 2,610 crore, according to an ICRA rating report.

GMR Warora is a subsidiary of GMR Energy, itself 53% owned by GMR Power & Urban Infrastructure. It has fuel links with Coal India and an electricity offtake agreement with distribution companies from the state governments of Maharashtra and Tamil Nadu.

GMR Warora has two thermal power plants of 300mw each, located in Maharashtra. It was acquired by GMR Group from EMCO Energy in 2009 for an undisclosed price. In 2013, GMR put him on the block to reduce debt at the group level, according to an ET report in December of that year. A third person said the band couldn’t sell it due to valuation differences.

In 2016, ICRA downgraded GMR Warora to “D” after it defaulted on lender payments. The rating was upgraded to ‘BB’ the following year after the company regularized the payments.