Lenders ok strategic investor in Vishal Retail: CMD
Press Trust of India / Mumbai/New Delhi Mar 12, 2010, 18:16 IST
The crisis-ridden retail chain Vishal Retail today said it has received approval from its lenders for inducting a strategic investor into the company, to help it emerge from Rs 735-crore debt pit.
The company also said a formal announcement in this regard will be made on March 26, when the dozen-odd lenders of the New Delhi-based retailer meet for the next round of talks on its corporate debt restructuring programme.
"Prima facie, approval has been granted to the proposal regarding induction of a strategic investor into the company. The proposal had been developed on the basis of intensive discussions with all concerned," Vishal Retail chairman and managing director Ram Chandra Agarwal said.
He said the decision to approve induction of a strategic investor was taken during a meeting of the corporate debt restructuring (CDR) panel in Mumbai today.
"A formal communication will be provided at the next meeting of the CDR panel on March 26," Agarwal added.
Vishal had sought a debt restructuring exercise last November to bring the company back into feet after being hit by falling sales and a huge debt of Rs 735 crore. It proposed a series of steps including infusion of fresh liquidity through a strategic investor and deferment of its debt payment before the CDR panel.
Today's decision by the CDR Panel clears the way for private equity group TPG Capital, which has reportedly shown interest in buying a stake in the debt-ridden retail firm.
However, TPG Capital India managing director Puneet Bhatia refused to speak on the matter.
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