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GMR Rajahmundry Energy Ltd updates on OTS
Posted On : 2025-04-01 10:43:02( TIMEZONE : IST )
GMR Rajahmundry Energy Limited ("GREL") is an Associate Company of GMR Power and Urban Infra Limited ("GPUIL" or "the Company") in which GMR Generation Assets Limited ('GGAL'), a Subsidiary of the Company holds about 45% of the equity share capital of GREL, the Balance 55% being currently held by the GREL lenders (loan amount of Rs.1414 Crs. was converted in 2016, into this equity representing 55% of total GREL equity).
GREL had set up a 768 MW (2x384 MW) gas based Combined Cycle Power Plant (CCPP) project in Andhra Pradesh. However, due to non-availability of affordable natural gas, the Plant has not been able to run at optimal levels and in view of the same, the lender's consortium had during 2016 implemented a Strategic Debt Restructuring (SDR) to convert part of the outstanding debt into equity and during 2018 restructured and bifurcated the into sustainable debt and unsustainable debt portions.
Despite several attempts of finding alternatives and various representations at appropriate forums to revive the plant, due to non-availability of affordable natural gas, GREL could not commence regular operations and accordingly as a forcemajeure, the company approached for a One-Time Settlement (OTS) proposal with its lenders. The total amount currently outstanding by GREL to its lenders including sustainable and unsustainable debt is Rs. 837.7 Crs. of term loan (Term Loan), Rs.261.4 Crs of Non-Convertible Debentures (NCD) and Rs.940.60 Crs. of Cumulative Redeemable Preference Shares (CRPS).
The consortium of lenders of GREL unanimously approved to accept the One-time settlement ('OTS') amount of Rs. 657 Crs. towards full and final settlement of entire exposure including Term Loan, NCDs, CRPS, Interest Payable and Equity Shares and for closure of Corporate Guarantees. The Company accepted the proposal and accordingly paid the first instalment of Rs.165.70 crs. towards aforesaid OTS on March 29, 2025. The Balance amount will be paid as per the schedule communicated and consented by the consortium in the meeting held on March 28, 2025 by the lenders, which is now under re-approval process by the lenders.
