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Follow on Google News | Maytas Infrastructure may divest some projectsTo raise funds to complete other assignments; board to formally approve corporate debt restructuring A two-day board meeting of Maytas Infrastructure’s six-member new board, which comprises four government-nominees
By: Real estate The project management committee comprises two government-nominated directors, Anil K Agarwal and Ved Jain, two nominees from Infrastructure Leasing & Financial Services Ltd (IL&FS) and one each from State Bank of India (SBI) and ICICI Bank, both large lenders to the company.The board meeting is taking a “360 degree evaluation approach” for each of the projects that are either in different stages of implementation or looking for financial closure, sources in the company said. The company is implementing around 40 projects.Asked about the exercise, a company spokesperson said the board "is evaluating every project". Declining to discuss details, he said the company would make appropriate disclosures after the meeting.Maytas Infrastructure is a listed company promoted by the family of Satyam Computers founder Ramalinga Raju, who confessed to inflating profits in January this year. The company was one among two — unlisted Maytas Properties being the other — that Satyam proposed to acquire for Rs 8,000 crore in December last year. The proposal was dropped after strong shareholder protest, an issue that led to Raju’s confession. Maytas Infrastructure, which won the bid for the Hyderabad Metro by suggesting it would fund the project from adjacent real estate projects, carries around Rs 4,000 crore of debt on its books. This includes around Rs 2,000 crore on its own books and another Rs 2,000 crore on the books of various special purpose vehicles created for specific projects.SBI and ICICI have an exposure of around Rs 800 crore each and IDBI Bank Rs 350 crore. Another 16 banks have a combined exposure of around Rs 2,000 crore, sources in the banking sector said.The Maytas CDR exercise differs from other companies in that it is the government-appointed directors that recommended the move, after discussions with lead lenders. Sources said the board is likely to appoint SBI Capital Markets advisors to the CDR exercise.Referring to the CDRs became necessary when bank guarantees were invoked after Maytas could not meet various commitments. Since these guarantees were unsecured, banks are now asking for collateral. “In the given situation, all the lenders are seeking a pari pasu charge on all assets, which is a big challenge for the company and also for the banks,” sources close to the development said.Once the company is referred to the CDR, the board plans to request banks for a working capital loan. “We need around Rs 500 crore to keep the company afloat,” said a senior board member on condition of anonymity........http://www.maaproperties.com/ At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home. We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI) # # # Maa properties provides property related transactions in Hyderabad like buy, sell, rent, lease, providing tenants, maintenance for nris under three services property deals, property analysis and property care. End
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