A consortium of lenders led by IDBI Bank on Wednesday sought bids towards a one-time settlement (OTS) supply made by the promoters of Matix Fertilisers and Chemicals for its debt of round Rs 4,000 crore. Lenders, who account for roughly 70.74% of the excellent debt, have agreed to the phrases of the OTS supply, which different events can now match or higher by means of the Swiss Challenge course of.
According to a doc issued by SBI Capital Markets (SBICaps), the principal rupee loans owed by Matix to 11 lenders is Rs 3,222.55 crore. The firm has international forex borrowings, too. Apart from IDBI, the opposite lenders within the consortium are Punjab National Bank (PNB), Axis Bank, Central Bank of India, Canara Bank, Bank of India (BoI), State Bank of India (SBI), Union Bank of India, EXIM Bank, Bank of Baroda (BoB) and IIFC (UK).
“Since the ability of the company to service its debt obligation has been adversely impacted due to unavailability of gas and working capital, lenders signed an inter-creditor agreement on July 05, 2019, for resolution of the debt outstanding,” the doc mentioned. SBICaps was then mandated by the lead financial institution for the decision of excellent debt of the corporate. On September 15, 2020, Matix submitted its OTS supply for full and closing settlement of all debt excellent with the lenders. The lead financial institution responded to the letter on September 17, 2020, which was accepted by Matix.
The lenders are actually soliciting bids for settlement of their debt by means of the Swiss problem technique, with the prevailing OTS supply because the anchor supply. “Other lenders who would subsequently agree for settlement of their total outstanding debt, would also get included in the above-mentioned process. However, the interested bidders would have an option whether to include a bid for such lenders who would subsequently agree for settlement,” the doc mentioned.
The firm has arrange a gas-based greenfield urea manufacturing plant at Panagarh Industrial Park, West Bengal. The plant has a capability of 2200 TPD (0.73 mtpa) of anhydrous liquid ammonia and 3850 TPD (1.27 mtpa) of prilled urea, together with 54 MW captive energy plant, a devoted water reservoir, railway siding, steam technology and different utilities. The firm began manufacturing from October 1, 2017 at nominal capability however might function the plant just for 45 days. It needed to droop operations for need of working capital and availability of ample gasoline. “Thereafter, the plant has been non-operational although it continues to be well preserved and is ready to restart production on receipt of gas and completion of balance capex,” the doc mentioned.