Maytas Infra, promoted by the
son of Satyam Computer
Services ex-chairman B Ramalinga Raju, is all set to
implement its debt restructuring plan soon and has roped in leading
investment bank SBI Capital Markets Limited for this purpose. The infrastructure
company has talked with CDR cell, as it is facing acute liquidity problems.
Now, the priority of the government appointed board is to revive the
company through the CDR package and the successful execution of its projects.
The case of Maytas Infra is not an isolated one. In fact, many
companies cutting through various sectors, such as textiles, steel, gems and
jeweleries, auto components, and even retail, have been in talks with the CDR cell in
recent times. The steep economic slowdown across the globe and the tight
liquidity situation, especially since October 2008, have put enormous strain on
the financial health of Indian companies. Resultantly, an increasing number
of cases have been reported to the CDR cell—cases referred to the
Corporate Debt Restructuring Empowered Group increased to 34 at the end of
March 2009, as against 10 at the end of 2007-08.
Of the 34 cases, 14 were from the textile industry, while another
half-a-dozen cases have been reported from the steel sector. Moreover, there
are auto part manufacturers, and Subhiksha, a retailer, the
Mumbai-based pharmaceutical company Wockhardt, Chennai-based rig
operator Aban Offshore, etc. Lenders opine that since many of the companies
are unable to deal with the high level of debt, there would be more cases
that would be coming to the CDR cell over the next six to nine months.
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