Monday, February 20, 2017

GVK starts reducing debt to fund Navi Mumbai airport

Mumbai: The promoters of Mumbai International Airport Ltd (MIAL) has started reducing the huge debt of its parent company GVK Power & Infrastructure (GVKPIL) to fund the Rs 17,500 crore greenfield Navi Mumbai International Airport.
The Hyderabad-based company, which has a debt of around Rs 25,000 crore, including certain non-performing loans, has begun the process with certain assets being partially monetized to reduce the debt.

A Issac George, director & chief financial officer, GVKPIL, told DNA Money, "In the next fortnight, the transaction pertaining to the sale of 33% stake in Bangalore International Airport Ltd (BIAL) to Fairfax Holdings will happen. All approvals have come in. This transaction would raise around Rs 2,200 crore for the company to repay existing debt."

"As on December 31, 2016, GVKPIL had accumulated losses and the company has incurred losses during the preceding two years. The company has delayed payment of loans and interest and certain loan accounts have been classified as non-performing by banks," said GV Krishna Reddy, chairman & managing director, in the Q3 result statement.
20/02/17 Ateeq Shaikh/DNA