Lenders to CG Power and Industrial Solutions have agreed to a one-time loan restructuring to pave way for the Chennai-based Murugappa Group taking over the equipment manufacturer.
CG Power had a total debt of Rs 21.61 billion, out of which a consortium of 14 banks have taken a haircut of Rs 11 billion and restructured the remaining. Earlier in August 2020, Tube Investments of India Limited (TIIL) had agreed to invest Rs 7 billion in CG Power for a 56.61 per cent stake. The pact provides for lenders being paid an upfront amount of Rs 6.50 billion. Also, Rs 2 billion of debt would be converted into non-convertible debentures having a five-year tenure.