Bankers to discuss final CDR report of HCC on June 25

The lenders have already prepared the final report on restructuring HCC's debt. This has already been submitted to the CDR Cell. Lenders are likely to discuss this report when the CDR meets on June 25.

According to the final report around Rs 4,150 crore of HCC's debt will be restructured. This is against the earlier estimate of Rs 7,600 crore.

The revised restructuring amount is because working capital loans have been excluded from the restructuring package, because the company has expressed its confidence to service the interest regularly. That’s the reason why the bankers have kept away working capital loans from the restructuring package.

So, the restructuring package will now include only term loans which will be restructured. According to this package the company will be seeking additional working capital loans of around Rs 400-500 crore and also non-fund base limit which includes bank guarantees and so on worth around Rs 1,000 crore.

Besides, the tenure of the loans has been extended to 10 years and with the moratorium of two years. Also the company will not be looking at any conversion of debt into equity at this point in time.