Friday, August 28, 2020

MIAL headed for debt restructuring under RBI's special window

Mumbai: Lenders may take Mumbai International Airports (MIAL), a GVK-group entity, for debt restructuring under the RBI’s special window for Covid-19 impacted sectors and companies. A senior executive, with a private bank, said because of the pandemic, MIAL needs restructuring.
“It will have to wait for the recommendations of the Kamath panel. Then lenders will take a call on restructuring. The airport is one such business that needs restructuring,” the executive said.

MIAL has already availed moratorium on repayments under the RBI’s regulatory measures. The RBI has formed a panel under the chairmanship of K V Kamath to advise on debt-restructuring of corporate borrowers facing stress because of the pandemic. The panel is expected to suggest industry-specific parameters to ensure genuine cases come up and get prompt support.

Total bank loan facility rated amounted to Rs 9,781.7 crore, according to CRISIL. In 2017, the airport infra firm had also restructured its loans worth over Rs 10,600 crore.
A senior public sector official said that the two income streams of airports — space rented out and sale at retail outlets — have been affected and it would take a long time to see any improvement. The reworking of payments (by borrower) may be one option.

Earlier this month, rating agency CRISIL had downgraded its rating on Rs 350-crore term loans against real estate deposits of MIAL to 'C' from 'B'.

CRISIL also downgraded the ratings on the remaining bank loan facilities, including project loans. The ratings continue to be on 'Rating Watch with Negative Implications'.
28/08/20 Abhijit Lele/Business Standard
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