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ASSOCIATE SPONSORS
These non-convertible debentures (NCDs) are part of a bigger round of debt issuance of Rs 14,300 crore. A part of this debt issuance was sold down by banks and wealth managers to high-networth individuals and family offices.
The SP Group is under pressure to repay Rs 22,000 crore in debt reportedly by March 2025
SP Group had initially begun talks with lenders to secure $1.2 billion to refinance a part of its Rs 20,000 crore debt originally maturing in the last week of May
The Tata and SP groups have been at odds since Cyrus Mistry was ousted as Tata Sons chairman in October 2016.
The group’s borrowing costs rose by 2 percentage points due to a breach of a loan covenant breach for not divesting its stake in Gopalpur Port by the end of last year. Failure to list its engineering unit Afcons by June may incur further penalties.
On April 18, the Board of Future Retail approved a resolution plan to restructure secured financial debt from the company’s bankers. It had targeted to execute the plan by April 26, 2021.
The top court was hearing on the fifth day the cross appeals filed by Tata Sons and Cyrus Investments against appellate tribunal NCLAT's order which had restored Cyrus Mistry as the executive chairman of the over $100 billion salt-to-software Tata conglomerate.
The Supreme Court has fixed December 2 as the final hearing date as certain documents related to the case are yet to be filed.
Experts say that current laws in relation to capital reduction and fair value of assets, require the SP Group to pay charge on deemed dividend (to the extent of distributing free reserves) and capital gains tax (on assets over and above free reserves) to the Centre
Shapoorji Pallonji Group has as such demanded non-cash settlement in form of shares in all listed Tata entities where Tata Sons owns stake
SP Group noted that participation of both Tata Projects and Tata Consulting Engineers in the bidding process is a violation of the Central Vigilance Commission (CVC) rules
Cyrus Investments has pledged almost 82 percent of its holding in Tata Sons in favour of Axis Trustees to secure debenture funding of Rs 825 crore, which was later modified to a total amount of Rs 3957.84 crore in April 2020.
The SP Group has accused Tata Sons of undertaking efforts to "suppress and inflict irreparable harm on it, in the midst of a global crisis triggered by the COVID Pandemic".
The move is part of SP’s asset monetisation plan to deal with its Rs 30,000 crore debt.
