Shapoorji Pallonji Exits One-Time Restructuring After Repaying Debt Early

Shapoorji Pallonji & Co. said it has repaid debt worth Rs 12,450 crore to its lenders to exit the one-time restructuring scheme early.

Lenders led by State Bank of India unanimously approved the repayment and there was no haircut, the company said in a statement on Thursday.

It was one of the few large corporates to have availed the restructuring scheme launched, by the Reserve Bank of India, for companies affected by the Covid-19 pandemic and the resultant lockdowns.

The one-time restructuring scheme was implemented on March 31, 2021. At the time, the company had only sought a two-year moratorium on its repayments from lenders, it said in the statement.

SPCPL is the holding-cum-operating company for 18 group firm spread across six sectors, including engineering and construction, infrastructure and real estate.

The promoters of the Shapoorji Group, the Mistry family, infused over Rs 5,100 crore into SPCPL. The company also sold Sterling Wilson Renewable Energy Ltd. and Eureka Forbes Ltd. to raise Rs 3,750 crore, the statement said.

"We are very happy to have repaid all our lenders ahead of plan. We expect this development to have a positive impact on the group’s credit outlook," the company said in the statement.

Apart from the Shapoorji Pallonji Group, Future Group companies had also sought the one-time restructuring scheme to avail more time to repay their debt. However, Future Group companies have not managed to repay their debt on time, leading to the scheme failing and Future Retail Ltd. being classified as a non-performing asset.