To overcome the impact of lockdown due to COVID-19, the Mistry group had applied for a one-time loan restructuring with a group of lenders led by State Bank of India in mid-September 2020 when it had faced cash flow problems leading to a Rs 200-crore default on a commercial paper issued to the Union Bank of India.
PTI
April 01, 2022 / 08:25 AM IST
The Shapoorji Pallonji Group on Thursday said it has settled the company’s debt with a one-time payment of Rs 12,450 crore to its all 22 lenders, leaving the group’s balance sheet with a Rs 3,600 crore loan.
To overcome the impact of lockdown due to COVID-19, the Mistry group had applied for a one-time loan restructuring with a group of lenders led by State Bank of India in mid-September 2020 when it had faced cash flow problems leading to a Rs 200-crore default on a commercial paper issued to the Union Bank of India.
At Rs 12,450 crore, Shapoorji Pallonji & Company’s one-time settlement was the largest in the system. The group had sought two years for settling its dues but managed to come out of it within one year, said the company owned by two brothers, Shakur and Cyrus Mistry holding 50 percent stake each.
The SP Group is also the second largest shareholder of Tata Sons with 18.7 percent stake after Tata Trusts, which owns over 62 percent in the $ 105-billion salt-to-software conglomerate. But the over 60-year-old relationship was roiled after the Tatas sacked Cyrus Mistry from the chairmanship of the Tata Group in October 2016, much ahead of his five-year tenure, leading to a messy legal battle for years.
The repayment was enabled by the Mistry family infusing over Rs 5,100 crore into the company last year and the group collecting Rs 3,750 crore from monetising two of its marquee assets — Sterling Wilson Renewable Energy and Eureka Forbes last year, the statement said without explaining how the rest of the money was arranged.
However, earlier this week the group has reportedly raised Rs 4,000 crore from mortgage lender HDFC after pledging shares of Sterling Investment Corporation which owns 9.19 per cent in Tata Sons, the core holding company of the Tata Group.
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