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 ET.
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.
«The discussions are ongoing, and the debt will be restructured with a repayment reschedule,» said the source.
The unsustainable debt will be written off in a phased manner, the source added. «After the restructuring, sustainable debt will be crystallised and reflected in the balance sheet, while the remaining will be written off over the next five years,» the source added.
Around ₹1,000 crore to ₹1,200 crore could be restructured as sustainable debt with a revised repayment schedule.
As of July 29, 2023, over 80% of Simplex Infra's lenders have transferred their debt to the National Asset Reconstruction Company (NARCL). NARCL has appointed India Debt Resolution Company (IDRCL) as its exclusive agent for managing and
