Jindal Steel Looks to Monetize Assets and Pay Down Debt
03/11/2016 - Indian steelmaker Jindal Steel and Power Ltd. plans to sell stakes in some of its steel businesses as a way to raise money and pay off debt, according to livemint.com.
According to the Indian online publication, the company’s plans were announced a day after ratings agency Crisil Ltd. downgraded some of its borrowings to default status, citing delays in interest payments on term loans.
The steelmaker has had five straight losing quarters, and like other steelmakers, its earnings are being impaired by low-cost imports from China, Japan, South Korea and Russia.
Livemint reported that the company is now in advanced talks with steelmakers in some of those same Asian countries and in Europe to form joint ventures. It also has held talks with several potential buyers for its power assets.
“We have some very good proposals from players within and outside the country,” Jindal Steel chief executive Ravi Uppal told the publication.
However, the company may not have much time left to put some deals together.
A group of foreign lenders is considering whether to recall US$550 million in loans, reports The (India) Economic Times. The group includes Bank of America, Deutsche Bank, Bank of Tokyo-Mitsubishi UFJ and Barclays.
The steelmaker has had five straight losing quarters, and like other steelmakers, its earnings are being impaired by low-cost imports from China, Japan, South Korea and Russia.
Livemint reported that the company is now in advanced talks with steelmakers in some of those same Asian countries and in Europe to form joint ventures. It also has held talks with several potential buyers for its power assets.
“We have some very good proposals from players within and outside the country,” Jindal Steel chief executive Ravi Uppal told the publication.
However, the company may not have much time left to put some deals together.
A group of foreign lenders is considering whether to recall US$550 million in loans, reports The (India) Economic Times. The group includes Bank of America, Deutsche Bank, Bank of Tokyo-Mitsubishi UFJ and Barclays.
