MEP Infra seeks shareholder nod to rope in new investor
MEP Infrastructure Developers (MIDL) is seeking shareholder approval to bring in a new investor into the company, who will infuse ₹225 crore under the pre-packaged insolvency resolution process (PPIRP) that will allow the company to recoup the delays in payments and standardise the account which is currently classified as a non-performing asset.
The PPIRP was introduced for micro, small and medium enterprises or MSMEs in 2021. It provides a quicker and cost-effective resolution to insolvent MSMEs and has to be completed within 120 days from the date of initiation. It is unclear how MIDL, an infrastructure company qualifies for PPIRP, as to qualify for this process the default amounts need to range anywhere between ₹10 lakh to ₹1 crore.
Separately, MEP Infrastructure (MIPL), the operating company of the group is also seeking to restructure its loans.
«We are in talks with lenders for restructuring by infusing ₹125 crore in line with the Reserve Bank of India's (RBI) June 7 circular. Once we receive all approvals it will help us to realign our debt repayment schedule with different lenders and allow us to start on a fresh clean slate,» Mhaiskar said.
In a notice to the stock exchanges earlier this month, MIDL had said it aims to sell 51% of shares in the company to Nagpur-based ARCPL at a total consideration of ₹225 crore. Shareholders will vote for the company's proposal to sell shares to ARCPL and also initiate a restructuring process between February 27 and February 29.
Bankers though are wary of the company's
