Sobha Developers seeks debt recast from Banks, FIs

The report stated that the company is open to “even 49% participation from private equity players at a special purpose vehicle (SPV) level.

Sobha Developers is reportedly in talks with banks, financial institutions and private funds to restructure over Rs10bn of its total debt of about Rs18bn, according to a report in a business daily. "We feel that banks, financial institutions and funds have agreed to support us. A clearer picture will emerge in the next 2-3 weeks," said J.C. Sharma, Managing Director, Sobha Developers.

Sharma added that the company had no overdue in principal payment, nor were there any interest delays. "We are confident that we could bring down the debt-equity ratio to less than 1:1," he said. The current debt equity ratio is 1.56:1. The company is open to even 49% participation from private equity players at a special purpose vehicle (SPV) level.