Value retailer Vishal Retail’s proposal for corporate debt restructuring is likely to take a final shape in the next 60 days. The company is planning restructuring debt worth Rs 730 crore.
“We are looking at a loan extension from banks and hope to achieve a conclusion soon,” said Mr Ambeek Khemka, Group Vice-President, Vishal Retail. Earlier this week, the company had met with as many as six banks.
The State Bank of India is one of the main lenders to the retail chain. There about 13 odd banks involved. SBI has about Rs 170 crore of exposure to the company.
The company is also mulling to dilute its stake to tide over the cash crunch.
Bank sources informed that lenders are likely to give a four-year moratorium on the interest payment as well as the principle amount. Vishal Retail had about Rs 100 crore of interest payment annually.
Additionally, the company is looking at shutting down unviable stores and looking to reduce its inventory. Currently, Vishal Retail has 180 retail outlets in 24 cities.
Meanwhile, the board of directors of Vishal Retail has decided to merge a company by the name of Vishal Water World Pvt Ltd with Vishal Retail Ltd in accordance with the Companies Act.
The board also took note and adopted the scheme of merger, valuation report and the fairness opinion on the scheme of merger.
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