Murugappa Group signs agreement for settling CG Power's dues, loan recast

A counter guarantee has also been submitted for non-fund based facilities extended by the lenders to CG Power
CG power's promoter Murugappa Group has signed a definitive agreement for settlement of lender dues and restructuring.

On November 21, TII informed the stock exchanges about the execution of requisite binding agreements, including Master Implementation-Cum-Compromise Settlement Agreement (Agreement) dated November 20, by CG Power, the Company and the lenders of CG Power, for one-time settlement and restructuring of funded facilities and guaranteed debt of CG Power. 

TII informed the BSE today that pursuant to the terms and conditions of the agreement, CG Power's resolution of outstanding obligation towards its lenders, in accordance with the terms set out in Reserve Bank of India (Prudential Framework for Stressed Asset) Directions, 2019, has been completed by payment of the upfront consideration of Rs 650 crore to the Lenders as compromise settlement.

A counter guarantee has also been submitted for non-fund based facilities extended by the lenders to CG Power, and towards issuance of five-year unrated, unsecured, unlisted, non-convertible debentures aggregating to Rs 200 crore. 


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel