Construction Mirror Article detail

NARCL plans to separate sustainable part of Simplex Infrastructures debt

NARCL, which acquired EPC company Simplex Infrastructures' ?9.600-crore debt from lenders led by Punjab National Bank (PNB), is exploring a restructuring plan to split the exposure into sustainable and unsustainable portions, potentially writing off the latter, sources told.

 

The plan, which envisages gains for the company's stock on its approval, is in the early stages of discussions.

 

NARCL had acquired the loan in cash and security receipts (SRs) for ?640 crore earlier this year. The state-backed bad bank had bought the debt from lenders at a 93% discount. The banks involved include PNB, State Bank of India, Canara Bank, Bank of Baroda, Bank of India, Union Bank of India, RBL, IDBI Bank and Standard Chartered Bank.

A NARCL spokesperson did not immediately respond to a request for comment.