Lilliput BDR process picks up pace on probable lenders' nod

After the settlement of its months-long battle with Bain Capital and TPG, controversy-emroiled kidswear-maker Lilliput's bilateral debt restructuring (BDR) process has begin  to pick-up pace with the consortium of 10 lending banks set to give its final nod in October, reports CNBC-TV18's Farah Bookwala.

Three days after kidswear-maker Lilliput ended its long-standing spat with private equity investors Bain Capital and TPG, the company's bilateral debt restructuring process, which proceeded at a snail's pace till date, is finally seeing signs of revival.
Sources indicate that the bilateral debt restructuring process, which is worth Rs 875 crore, is likely to receive its final nod within October, thereby paving a way for its implementation in November.
Lilliput owes a consortium of 10 lending banks Rs 873 crore. Of these, three main banks Allahabad Bank, Axis Bank and the Oriental Bank of Commerce who together are exposed to 70 percent of Lilliput's debt, have already sanctioned the BDR process. Two other banks, ICICI Bank and the Bank of India, are likely to give their approval within October.
The consortium of 10 lending banks is likely to provide an additional funding of Rs 100 crore to Lilliput to restart its operations over and above the Rs 180 crore that Lilliput is already seeks from them in the form of a funded-interest term loan.
Sources also indicate that after the settlement of the feud with Bain Capital and TPG, Lilliput promoter and 100-percent owner Sanjeev Narula is now looking at offloading some stake through the FDI route.
According to sources, he is in talks with two-to-three major global major PE investors as well as with some strategic investors from the Far East mainly South Korea, China and Japan.