JSL Stainless may come out of CDR by Sept 2012: Exec
Indian stainless steel maker JSL Stainless expects to come out of its corporate debt restructuring (CDR) by September 2012, much before the original deadline of March 2020, as the new plant in Orissa is expected to stabilise and enhance cashflows, a top executive said.
July 13, 2011 / 15:32 IST
Indian stainless steel maker JSL Stainless expects to come out of its corporate debt restructuring (CDR) by September 2012, much before the original deadline of March 2020, as the new plant in Orissa is expected to stabilise and enhance cashflows, a top executive said.
"By September 2012, we should be exiting CDR (corporate debt restructuring)," Arvind Parakh, director-finance, told Reuters in an interview on Wednesday.JSL, which has a total debt of about Rs 75 billion including about USD 600-700 million in overseas loans, got its lenders to recast debt last year after a global downturn curtailed its expansion plans and made repayments difficult.The CDR brought down interest cost and stretched repayment period to a maximum of 10 years for JSL.The partly-operational 1-million-tonne new steel capacity in Orissa will double the firm's topline in FY13, boosting cashflows and profits and helping the firm exit CDR, Parakh said. JSL has another facility in Haryana with 780,000 tonnes capacity.An exit from CDR will raise the average borrowing cost for the firm to about 10-12% from 8% now and the firm plans to refinance part debt with foreign currency loans to keep the overall cost low. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
