Lenders to debt-laden private sector infrastructure firm IVRCL are in talks with Essel Infraprojects Ltd to sell a controlling stake in Hindustan Dorr-Oliver (HDO)- a listed unit of IVRCL- in their bid to recover pending dues from the company.
According to a report in Mint, the talks were in an advanced stage and led by creditors of the infra firm. "The talks are at a final stage and are being led by the creditors of IVRCL who are trying to sell the company's assets through a piecemeal approach to recover their dues while simultaneously looking for a new owner," the report quoted unnamed sources as saying.
IVRCL has around 55 percent stake in Hindustan Dorr-Oliver, which is engaged in engineering, procurement and construction activities with a plant near Ahmedabad.
Notably, lenders to debt ridden IVRCL had decided to take the strategic debt restructure (SDR) route last December by converting their debt into equity. Subsequently, lenders are trying to sell company's assets in order to recover their debts as they now have more than 51 percent stake in the infra firm.
"Lenders initially tried to sell equity at the company (IVRCL) level, but were not successful," the report said adding that now they are looking to sell its subsidiaries in order to reduce their liabilities.
In February this year, IVRCL had informed stock exchanges that State Bank of India on behalf of lenders had approved the SDR conversion package. According to the report, lenders converted part of firm's debt into equity at a price of Rs 8.765 per share and now hold more than 51 percent of total share in the company.
Earlier Essel Group chairman Subhash Chandra had said that his company was keen to acquire IVRCL to strengthen Essel's infrastructure business.
