Banks invoke S4A to recast Patel Engineering’s Rs2,963.5 crore debt - News Summed Up

Banks invoke S4A to recast Patel Engineering’s Rs2,963.5 crore debt


Patel Engineering’s prompt debt resolution might not always be replicable in the burgeoning distress in the infrastructure sector. Photo: Indranil Bhoumik/MintMumbai: Lenders to Patel Engineering Ltd have invoked the Scheme for Sustainable Structuring of Stressed Assets (S4A) to recast its debt. According to the resolution plan, Patel’s debt of Rs2,963.5 crore will be categorized into two parts—Rs1,724 crore of sustainable and Rs1,239.5 crore of unsustainable debt— the firm told stock exchanges on Saturday. The guidelines have further defined sustainable debt as that portion of the total debt that can be serviced even if future cash flows remain at current levels. On Monday, shares of Patel Engineering Ltd fell 1.54%, or Rs1.20, to Rs76.70 while the benchmark Sensex shed 0.84% to end the day at 33,033.56 points.


Source: Mint November 13, 2017 18:33 UTC


Loading...
Loading...