Unitech rejigs 75 per cent of its debt

Real-estate developer Unitech today announced that it rescheduled more than three-fourths of its total debt of Rs 8,000 crore to buck the slowdown....

Written by ENS Economic Bureau | New Delhi | Published: February 11, 2009 2:03 am

Real-estate developer Unitech today announced that it rescheduled more than three-fourths of its total debt of Rs 8,000 crore to buck the slowdown in the sector and release greater liquidity for other projects.

“We have been able to reschedule over 75 per cent of our commitments,” managing director Sanjay Chandra told reporters here. “We will shortly be in a position,where we will hopefully be having a lot of liquidity to look at other opportunities and initiatives,” he said.

Chandra also said that Unitech had converted a lot of short-term debt into long term one. On January 19,Chandra had said the company would replace Rs 2,500-crore short-term borrowing,to be paid by March 2009,with long-term debt in the next two months. “We are changing our borrowing profile from short-term to long-term. So,from mutual funds,we are moving a lot towards banks and financial institutions,who have more long-term capital,” he had then said. As a means of raising further liquidity,Unitech had also convinced shareholders to raise up to Rs 5,000 crore through issue of securities.

When asked about the sale of Unitech’s budget hotel ‘Courtyard’ in Gurgaon and its office building in the national capital,he said the deals were expected to close by the end of this quarter.

On pledging of promoter shares in Unitech,Chandra said the necessary disclosures would be made soon. Sebi has mandated all listed entities to make periodical and event-based disclosure of shares pledged by promoters in the wake of the Satyam scandal,where promoter Ramalinga Raju’s family had pledged nearly its entire holding.

Unitech posted a 74 per cent decline in consolidated net profit at Rs 136 crore for the quarter ended December 31,2008 against Rs 525.78 crore in the year-ago period.

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