Lenders to Ratnagiri Gas and Power Pvt. Ltd. have agreed to move ahead with a resolution plan, which includes a conversion of part of the company’s debt into cumulative redeemable preference shares, two bankers familiar with the plan told BloombergQuint, on condition of anonymity.
As part of the Ratnagiri Power debt resolution plan agreed upon last week, lenders will convert Rs 3,600 crore of unsustainable debt into CRPS and hold it in their investment books for a 15-year period. The power plant’s total debt stands at around Rs 9,000 crore, the people quoted earlier said. Power sector assets, such as Ratnagiri Power, are among the largest contributors to stressed assets across the Indian banking system.
Lenders have been struggling to restructure nearly Rs 1.45 lakh crore in power sector loans, which are now being resolved under Reserve Bank of India’s new stressed asset framework released in June. Read More
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