Infrastructure India unit restructures debt

IIP : Infrastructure India unit restructures debt

Infrastructure India’s Distribution Logistics Infrastructure business (the new name for Vikram Logistic & Maritime Services) has agreed to restructure the debt it owes to its banks. It was paying 15.5% interest on loans with a maturity date of 2020. Under the new deal it won’t have to repay any debt until January 2016, the blended interest rate will be 12% and the final repayment of the loans will be in 2027.

Distribution Logistics Infrastructure has INR 5,017m (£51m) outstanding and can access a further INR 785m (£8m). It is getting a refund of all the interest an principal payments it made on its loans after February 2014 = INR680m (£6.9m). They also have a 12 month rolling working capital facility of INR187m (£1.9m) which carries an interest rate of 1.75% over a floating base rate (currently 12%).