Maytas Infra’s debt restructuring gets approval

The debt restructuring proposal for Maytas Infra Limited has been given the nod by the Corporate Debt Restructuring (CDR) Cell. The CDR package has been approved unanimously by the banks.

The Provisional Letter of Approval has been approved by the Board of Directors of Maytas Infra Limited in its board meeting held on June 19, 2010.

The approval permits Maytas Infra Limited to bring the overall debt in the company to a sustainable level and at a reasonable pricing. The package will support the debt striken company in its ongoing strategic and operational initiatives to strengthen the business model and cash flows of the company

The overall debt on the balance sheet of Maytas Infra would come down from over Rs1,800-crore to around Rs800-crore -- this will be through a mix of one time settlements with a few banks, conversion of debt into preference shares and restructuring the composition and structure of the debt.

Maytas Infra Limited will be working closely with the banks to finalise the Master Restructuring Agreement.