Aditya Birla ARC inks stressed assets deal with RattanIndia Power

Aditya Birla Asset Reconstruction Company [ARC] Limited has agreed to acquire part of the debt that RattanIndia Power Limited owes its lenders for a 1,350 MW thermal power plant in Amaravati. The deal is part of a broader debt settlement transaction that RattanIndia has agreed to with its lenders. As part of the settlement, RattanIndia has offered to pay Rs 40.5 billion to its Phase I lenders. This will be through a Rs 36 billion cash infusion by Aditya Birla ARC, a Rs 2 billion infusion by RattanIndia’s promoters and Rs 2.5 billion in the form of redeemable preference shares. The shares will be issued to a group of lenders led by PFC. RattanIndia’s board has decided to issue non-convertible debentures to Aditya Birla ARC for up to Rs 72 billion in one or more tranches. This will include the nominal coupon bearing long-term instruments towards a portion of the unsustainable part of Phase I outstanding debt. The board also approved issuing shares for a total of up to Rs 6.33 billion to a trust set up by Aditya Birla ARC upon conversion of a portion of the unsustainable debt.