MUMBAI | KOLKATA: Jindal Steel & Power Ltd (JSPL) has defaulted on interest repayments to its bondholders due on September 30, 2016.
Those non-convertible debentures (NCDs) had a coupon rate of 9.8% with about two-10 year maturities with banks, provident funds believed to be the investors. Axis Trustee Services was the trustee.
“The non-payment of interest on the NCDs has been disclosed as per regulatory norms. The said non-payment is due to shortterm cash flow mismatches and will be paid in due course,” a JSPL spokesperson told ET.
On October 1, the company informed the National Stock Exchange of the development. “This is to inform you in terms of Regulations 30, 51, 56 of SEBI, the company has not made payment towards the interest due on the following NCDs the due date for payment of which was September 30, 2016,” JSPL said.
Earlier this year, ratings major Crisil had cut JSPL’s corporate debt rating to 'D', which is default category, from 'BB+'. According to Crisil, JSPL had a total outstanding debt of Rs 40,000 crore, of which Rs 26,200 crore was in longterm instruments and Rs 13,800 crore in short-term papers.
In March, Franklin Templeton Mutual Fund, the biggest holder of the company's bonds, dumped its holdings in the debt-laden steel maker.
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