Financial Daily from THE HINDU group of publications
Sunday, Apr 10, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Corporate - Announcements


Ispat, UTI Asset Mgmt arrive at loan settlement

Our Bureau

Mumbai , April 9

ISPAT Industries Ltd has informed the BSE that it has arrived at a settlement with UTI Asset Management Company Ltd on its outstanding loan of Rs 584.54 crore.

The terms of the settlement, approved by Ispat's board, entails paying the entire principal amount of Rs 344.75 crore and 81.21 per cent of the simple interest of Rs 239.79 crore amounting to Rs 194.74 crore.

In the process, UTI waived Rs 125 crore, which is the compound interest and penal charges on the debt.

Ispat said it has already made an upfront payment of Rs 55 crore and the remaining through 35 monthly instalments, though not equated. The rate of interest for this has been set at 8 per cent, down from 18 per cent when the loan was procured.

This settlement is expected to reduce interest outgo to the extent of Rs 50 crore annually, a company spokesperson said.

At the end of March 2004, Ispat had an outstanding debt of Rs 6,800 crore. A substantial portion of this has been settled with the lenders under the corporate debt restructuring package.

The UTI loan was outside the package. During the 2004-05 fiscal, the company may have repaid up to Rs 600 crore to various lenders, an official said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Ispat, UTI Asset Mgmt arrive at loan settlement


BHEL unit bags Rs 90-cr order
Nestle board to decide on interim
Assocham for speedy disposal of pending corporate cases
ICRA revises rating definitions
Sirpur Paper plans Rs 294-cr expansion
Indian pharma cos look to Chinese booster
Kanoria Chemicals to sell surplus power to PTC
Godrej, Canadian co tie up for ready-to-fit doors
`Our focus is on increasing visibility of Duckback brand'
Coal India sets production target of 343 mt for '05-06
Ahill to widen garment range, enter Lanka
SPL Industries plans IPO
'Rover crisis unlikely to affect Tata Motors'
Buoyant ore prices prop up NMDC profit
NFCL Kakinada plant posts record urea output
Rajesh Exports bags Rs 126-cr Kuwait order


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line