SP Group arm Goswami Infra sweetens bond deal
Shapoorji Pallonji Group (SP Group) is offering ₹400 crore more to the bondholders of group company Goswami Infratech, in exchange for their consent to extend the deadline to meet certain covenants on ₹14,300 crore of borrowings.
The company, which has to pay ₹1,400 crore in interest this month, has sought a four-month window to allow it to sell some assets and ensure the payment at 18.75%.
In a letter seeking consent from bondholders on May 18, Goswami Infratech has requested them to extend the deadline to September 30, 2024. This involves updating the agreement to push back the date when extra costs or higher interest rates would apply under the original agreement. The extension will give it more time to manage the debt without facing immediate financial penalties.
«There was a pushback from some holders of the bond and, therefore, the SP Group has tried to sweeten the deal for them,» said a person in the know.
Large private credit funds including Varde Partners, Davidson Kempner, Canyon Capital, Cerberus Capital and Deutsche Bank had invested in the rupee-denominated bond, borrowed primarily against the SP Group's shares in Tata Sons and Afcons. Goswami Infratech has informed its bondholders that the SP Group is in the process of securing a loan facility from a new lender through its main investment vehicle, Sterling Investment Corp.
«However, even upon consummation of the transaction with the new lender, it shall only be possible to repay a part of the existing sterling indebtedness as the amount available
