GMR to cut debt, sell some road assets

Hyderabad: GMR Infrastructure, laden with a debt of Rs39,208 crore, is looking for ways to wriggle out of its indebtedness.
Its Board of directors has approved an enabling provision to raise about Rs2,500 crore from the market to part-pay the debt, but the company is shying away due to an unfavourable capital market.
“We may look at long-term mezzanine debt or a loan with a term of about 10 years or so to bring down the debt. We are making some efforts to put some assets on the block, particularly in the roads vertical. However, these efforts are at a preliminary stage and I cannot confirm anything at this point,” A Subba Rao, GMR’s chief financial officer, said.
He said the approval from the Board to raise about Rs2,500 crore would take some more time to be put into action since the market conditions are still not favourable.
11/08/12 KV Ramana/Daily News & Analysis

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