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Ispat gets a relief worth Rs.586 crore

Anurag Bhullar


Lenders of Ispat Industries have agreed to delay the repayment it was supposed to pay-off in the period October 2008 to March 2010. As per the amended scheme, the payments will commence from April 2010.


The deferment of Rs.586 crore to creditors (IDBI Bank, ICICI Bank, UTI and IFCI) has been allowed after Ispat showed its inability in sticking to the CDR (Corporate Debt Restructuring) scheme that came up in 2001 after being sanctioned by the Financial Institutions. The decision is believed to leave the profit and loss accounts unaffected though the cash flow is to expected to experience a boost.


Executive Director, Ispat Anil Sureka said that the terms of re-payment of the other amount Rs.6400 crore still hold the earlier way. He also informed that the average rate of interest of the CDR loan is 10-11%.

 
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