The Mistry family-led Shapoorji Pallonji Group is planning to restructure Rs 10,900 crore of its debt under the resolution framework for COVID-19 pandemic-related stress, an official told news agency PTI.
The group is seeking this relief under the one-time loan restructuring plan approved by the Reserve Bank of India (RBI) after it accepted the KV Kamath panel report, which allows financially stressed companies to recast their debt for two years, the official said.
The business group recently made public its decision to part ways with the Tata Group. This came after the Supreme Court barred the SP Group from pledging or selling any of its Tata shares until October 28.
The court order came after Tata Sons moved the Supreme Court on September 5 against the Tata Group shares pledged by the SP Group in December 2019 and April, along with a move made by the Mistry family-owned SP Group to pledge shares in favour of Canadian private equity firm Brookfield Asset Management.
The Mistry family owns 18.37 percent shares in Tata Sons, the holding company of the Tata Group. The construction and real estate sectors, the mainstay of the SP Group, have been badly hit by the pandemic. As a result, it was looking to raise funds from global investors by pledging its shareholding in the Tata Group.
(With inputs from PTI)