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Tag: debt

Thames Water calls in advisers on £12bn debt mountain

Thames Water calls in advisers on £12bn debt mountain

Business
The UK's biggest water supplier has called in bankers to advise on its £12bn debt mountain, amid concern about the impact of a looming regulatory crackdown on its finances.Sky News has learnt that Thames Water has hired restructuring experts from Gleacher Shacklock ahead of a crucial ruling next week from Ofwat, the industry watchdog, that will determine how much it can charge customers over the next five years. Thames, which is owned by a consortium of international investors, was dismayed by Ofwat's draft determination in July.It proposed that the company could spend up to £9.3bn during the next regulatory period - sharply lower than Thames's own proposed figure of about £11bn.Thames and a number of other large water suppliers will consider appealing to the Competition and Markets Author
Debt Recovery Tribunal stops DHFL from making payments

Debt Recovery Tribunal stops DHFL from making payments

Finance
MUMBAI: The Pune bench of the Debt Recovery Tribunal (DRT) has stopped DHFL from making any further payments to any of its unsecured creditors, passing an order on an application filed by Catalyst Trustee, the custodian of the indebted home financier’s bond holders. “The defendant …(DHFL) is temporarily… restrained (from) making further payments to any of its unsecured creditors, save and except in cases where the payments are to be made on a pro-rata basis to all secured creditors…,” the DRT said in the order, of which ET has seen a copy. A day earlier, the Bombay High Court allowed DHFL to make payments to banks and NBFCs that have securitisation arrangements with the stressed mortgage financier. “The order passed by the DRT will not have any bearing on the order passed by the Bombay Hig
India’s bad debt pile eased by write-offs, underlying problem far from resolved

India’s bad debt pile eased by write-offs, underlying problem far from resolved

Finance
Indian banks wrote off more than $ 30 billion worth of bad debt in the year to June 30, helping to lower stressed loans on their books by 8.5%, according to central bank data reviewed by Reuters. The write-offs illustrate the urgent problem of bad loans as borrowers struggle to service, let alone pay-off, their debt in a stuttering economy. As of June 30, total stressed assets on the books of Indian banks were at $ 137.50 billion, down from $ 150.22 billion a year ago, according to central bank data reviewed by Reuters. A large part of this reduction reflected the write-off by banks of loans worth $ 30.64 billion in the last financial year, the data obtained by Reuters via a right to information filing showed. And in the period ending June 30 - the first quarter of the current financial ye...
Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Finance
Mumbai: Banks have agreed for a one-time settlement for Tamil Nadu-based Coastal Energen, which owes creditors Rs 6,500 crore. Lenders have agreed to sell the company’s debt at a 55% haircut to a consortium comprising Hong Kong’s alternative investment fund SSG Capital and the distressed debt unit of Deutsche Bank, two people involved in the negotiations said. A 55% haircut works out to an upfront cash payment of Rs 2,925 crore, which the lenders will receive in lieu of their debt. They have also been offered a 15% equity in the firm, which could give them an upside in the future, said one of the persons quoted above. “The equity value is approximately Rs 200 crore, which we will get through issuance of fresh shares to banks. We expect this resolution plan to be completed either by the end
‘You should consider SIP in debt mutual funds,’ says Swarup Mohanty, CEO, Mirae Asset

‘You should consider SIP in debt mutual funds,’ says Swarup Mohanty, CEO, Mirae Asset

Finance
An SIP or Systematic Investment Plan is typically used to invest regularly in equity mutual funds. Does it make sense to invest through SIP in debt mutual fund schemes. Many investment experts do not think it is a smart idea, but Swarup Mohanty, CEO, Mirae Asset Global Investments (India), beg to differ. “If you have been comfortable doing RD in banks, there is no reason why you can’t take forward the same investment behaviour in mutual funds,” Mohanty told the participants at ET Wealth Investment Workshop, held in Noida last week. “Think about an SIP in debt. If you look at SIP in debt, they would have also given you very good returns. SIP in debt is a very decent investment vehicle. The only problem is that we do not talk much about it,” said Mohanty. Most mutual fund participants do not