MSP Steel & Power Limited has announced that it is set to exit the corporate debt restructuring (CDR) framework after its board approved the payment of the Right of Recompense (RoR) to consortium lenders led by State Bank of India.
In a filing on September 15, the company said that its borrowings were initially restructured in FY15 under the CDR package and later in FY18 under the Scheme for Sustainable Structuring of Stressed Assets (S4A). As per the restructuring terms and RBI guidelines, the company became liable to pay RoR once its financial performance improved.
The consortium of lenders, including SBI, Bank of Baroda, and Indian Overseas Bank, appointed a consultant to calculate the RoR amount. These banks have approved the RoR figure and issued confirmation letters. Approvals from the remaining lenders are expected soon.
The company clarified that upon payment of the approved RoR, its obligations towards the banks would be considered fully discharged, making it eligible to exit the restructuring framework.
MSP Steel stated that the exit will mark a “significant milestone in the turnaround journey of the company”, paving the way for new growth opportunities and expansion
