Bank of India (BoI) is likely to hold the key to whether Unitech Ltd will crater or survive the Ides of March.
A bit of explanation is in order: India’s No. 2 developer has to repay Rs 2,500 crore of loans by March 31, 2009.
Of this, about Rs 900 crore were due to mutual funds on January 19. Unitech is said to have paid Rs 500 crore of this on January 17.
The company, though, has not given specific confirmation detailing repayments to the stock exchanges.
The money was paid using Rs 300 crore of accruals and Rs 200 crore through “other sources”, said a top Unitech official, who did not wish to be named.
Unitech had raised Rs 900 crore through short-term loans from Reliance Mutual Fund and Kotak Mutual Fund paying an interest rate of 19%.
The builder also has taken Rs 1,000 crore of loans from banks. About 90% of this, or Rs 900 crore, has been converted into long-term debt, company sources said.
“We have restructured about Rs 2,500 crore of short-term debt to long-term debt in all,” a company spokesperson told DNA Money.
Unitech has a total debt of around Rs 8,700 crore.
The company now is seeking to raise Rs 700 crore, which it has to repay by March 31, and talks are on with BoI for this, sources said.
Any rejection of loan by BoI could mean Unitech wobbles afresh.
It is also expected to get money from Norway’s telecom firm Telenor, which bought majority stake in Unitech Wireless.
Company souces said this is due “by January end”.
Meanwhile, Unitech in its general meeting on Monday, also took enabling resolution from shareholders to raise Rs 5,000 crore by issuing fresh equity and convertible instruments.
However, the spokesperson said Unitech may not have to raise money if it manages to repay the Rs 700 crore of debt due by March 31.
The company reiterated that hotel and commercial property sale in Saket, Delhi is worked upon and financial closure on the same would be “very soon”.
It is expecting to raise Rs 270 crore from the hotel sale, while its commercial property is expected to garner Rs 500 crore.
