Abhijeet firm’s Rs 1,346 cr debt floated for ARCs

With Abhijeet MADC Nagpur Energy Private Limited (AMNEPL) having defaulted on its debt, lenders led by Axis Bank have put loans worth R1,346 crore on the block. In March 2013, the corporate debt restructuring (CDR) cell had recast loans worth R893 crore but the company has been unable to service the interest on this; lenders had sacrificed R113.28 crore as part of the recast.

With this the list of failures in the CDR cell will go up. At the end of March 2015, the total value of recast packages that failed was R56,995 crore, a 90% increase over the amount of R29,980 crore at the end of March 2014.

Banks have sought bids from asset reconstruction companies, people with direct knowledge of the matter told FE.

“Bids have been sought till May 27, after which the reserve price will be fixed,” said a source.

Based in Nagpur, the company is part of a group that has a presence in the core sector areas of power, roads, mining, EPC, ferro-alloys, steel and cement. Companies belonging to the Abhijeet Group are not listed on the stock exchanges but the estimated debt of the group stands at R12,000 crore.

AMNEPL is a special purpose vehicle promoted by Abhijeet Power, Abhijeet Infrastructure and Maharashtra Airport Development Company. The company had developed a 271 MW power plant in Nagpur for which it borrowed more than R1,300 crore from banks.

According to a source, all banks in the consortium — Axis Bank, UCO Bank, Bank of Maharashtra, Vijaya Bank, Bank of India, Indian Bank, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad — have unanimously called for bids on May 12. While Axis Bank had loaned Rs 310 crore, UCO Bank had lent Rs 188 crore to the company.

According to the master restructuring agreement signed between the lenders and the company in 2013, it “requested the existing rupee lenders to restructure the existing rupee loans” citing pending execution of the fuel supply agreement and the delay in availability of coal.

The Manoj Jayaswal-led Abhijeet Group has been alleged to be among the beneficiaries of the controversial coal block allotments. It was awarded blocks in Jharkhand and Chhattisgarh and was investigated by the Central Bureau of Investigation (CBI). After being featured as a beneficiary, the group has been struggling to generate enough cash flow and repay its dues.

Default stance

* CDR cell recast R893 cr of loans in March 2013 but company unable to service interest on this
* Total value of recast packages that failed to rise from R56,995 cr seen at end of March 2015
* Banks have sought bids from ARCs till May 27, after which reserve price will be fixed

 

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