Avijit Bajpai
With the proliferation of cash crisis in the real estate sector, Unitech Ltd, one of the prominent real estate companies in India, has rolled over Rs 500 crore from the sum of Rs 900 crore that is borrowed through about half a dozen Mutual Fund Schemes of fixed maturity.
According to the agreement with the mutual funds, the real estate company has repaid about Rs 400 crore and is rolling over the remaining amount further for three months at an interest rate of 14 percent, which is much higher than the interest rate charged on government papers (6 percent). Unitech originally borrowed the money at of 16 percent interest rate.
The company raised Rs 1400 crore from Fixed Maturity Plans (FMPs) of which Rs 900 crore is to be matured on January 19. Rs 400 crore of FMP borrowings have been already paid and the rest Rs 500 crore will be matured in next 12 to 14 months. According to sources, the mutual funds have agreed for a 3 month rollover with a hope that credit situation will improve in the period ahead.
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