Kolkata, Feb 25: Industrial Development Bank of India (IDBI) on Sunday has said it has been awaiting the decision of Indian Oil Corporation (IOC) on participation in Rs 5,170-crore Haldia Petrochemicals Ltd's (HPL) debt restructuring programme, before finalising it."The debt restructuring for HPL depends on the IOC's decision on whether to participate or not in the project. If IOC does not come, it will be a painful restructuring," IDBI chairman SK Chakrabarty said here. The consortium of financial institutions - including IDBI, IFCI and ICICI - have already agreed to grant a 18-month moratorium on repayment of the term loan.
In a meeting last week, the creditors decided to shift the repayment schedule from April 1, 2001 to October 1, 2002, he said, adding the decision has been already communicated to HPL.
However, a total restructuring of the Rs 4,200-crore debt component would depend on the IOC's decision to pick up stake in the project, which has been promoted by West Bengal government, The Chatterjee Group and the Tatas.
Asked on the nature of the restructuring, Mr Chakrabarty said the creditors, once they were conveyed with the IOC's decision, may decide on converting the debt into equity or waiver of principal or interest rate cut. In all the exercise of debt restructuring, "we want to ensure that the project is viable in the long run," Mr Chakrabarty said.
(PTI)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
