GMR, lenders strike first resolution plan for AP plant after quashing of RBI circular
NEW DELHI: GMR Infrastructure Friday said it has executed a bilateral resolution plan with lenders to its 768-mw gas-based power plant in Rajahmundry in Andhra Pradesh. This is first of the stressed assets to have been resolved after the Supreme Court quashed the Reserve bank of India’s controversial circular on April 2. The project was referred by the lead lender IDBI Bank to the insolvency court before the RBI circular was struck down by the Supreme Court. However, it was in the process of admission by the bankruptcy court.
Under the resolution plan, approved by all 12 lenders to the project, the existing debt of Rs 2,353 crore has been brought down to a sustainable debt of Rs 1412 crore. GMR Group has infused an amount of Rs 395 crore towards meeting 20% of the principal towards repayment of the sustainable debt and the interest servicing obligations of the project for the first year, an official statement said.
