In a major relief to troubled infrastructure company, Maytas Infra, 18 banks have approved

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its package for corporate debt restructuring (CDR). The banks include State Bank of India (SBI), ICICI Bank, Punjab National Bank (PNB), IDBI Bank and Indian Overseas Bank among others.

The CDR package was approved by State Bank of India, ICICI Bank, Punjab National Bank, IDBI Bank and Indian Overseas Bank, among others.

The total package is worth about Rs 1,600 crore. Banks would provide the company with a loan of Rs 100 crore for working capital management. In addition to cash, the banks will also give bank guarantees of Rs 200 crore, which would enable the company to bid for new projects, government appointed board member, Ved Jain, told Financial Chronicle.

“Initially, we had asked for a loan of Rs 200 crore. Rs 100 crore was sanctioned for now and another Rs 100 crore would be received in three months,” Jain said.

Maytas Infra would also be receiving bank guarantees worth Rs 200 crore in the next three months.

In a major relief to the embattled company, the banks have also announced a moratorium on payment of interest on the loans for a period of three years. After three years, the company would have to repay the debt over seven-and-a-half-years in quarterly installments. The interest rate in the fourth year would start from 8 per cent per annum and increase by 1 per cent, till it reaches market rate, Jain said.

The board reviewed the business plan and advised the management to ensure that commitments made to various stakeholders in respect of turnover, profitability, new business and related aspects are strictly adhered to, the company said.

“We are thankful to the banks for having cooperated with us in our hour of need,” Jain said. “With the CDR being approved, we would be able to execute our existing projects smoothly and bid for new work,” he added.