MMTC board approves debt restructuring scheme

NEW DELHI: The board of MMTC has approved the debt restructuring scheme of the state-owned company which envisages settlement of dues out of the disinvestment proceeds of the Neelachal Ispat Nigam Limited (NINL).

Under this scheme, MMTC "has got moratorium/deferment on recovery of interest for credit facilities up to December 2021/March 2022 and for Principal up to March 2022 by different Banks," the company said in a regulatory filing.

The final settlement, the company said, is envisaged out of divestment proceeds of NINL.

It may be affected by cases, government directives and Covid-19 pandemic situation, it added.

"It is hereby informed that pursuant to outstanding existing financial assistance/credit facilities restructuring scheme approved by Banks of MMTC Ltd in terms of...RBI guidelines, the Board of Directors of the company approved the implementation and signing of necessary documents in this regard on June 8," it added.

It informed that State Bank of India is the lead banker.