Maytas Infra may opt for corporate debt restructuring, says committed to projects

Hyderabad: The board of Maytas Infra Ltd represented by the two government-appointed nominees — O P Vaish and Ved Jain — along with B Teja Raju, R P Raju and B Narasimha Rao met here today and has considered the option of referring the company to the corporate debt restructuring (CDR) board, if necessary. A decision on this would be taken after an informal meeting with all the lenders on March 25, to assess the situation of the company.

Speaking to mediapersons after chairing the board meeting, Vaish said that lenders to the company had raised concerns and have advised that the company be referred to the CDR board. “We will be interacting with them and all the other stakeholders on March 25 to understand their concerns. And if need arises, the company will be referred to the CDR board,” Vaish said adding that debt restructuring is a normal process and it happens everywhere.

“Today, we had first hand information from the company. The existing board members made their presentations and we have sought for some more information and clarifications. They should be able provide us details within the next three days. We are currently assessing the situation. And since it is our first meeting, it is too early for us to comment about the state of affairs of the company,” he said.

According to Jain, the Government has appointed him and Vaish on the board to ensure smooth functioning and also to put the company on the right track. “We will take care of the interests of all stakeholders including the shareholders, lenders, vendors and also customers. We are also here boast confidence levels which might have eroded over the past few days. On March 25, besides meeting the stakeholders we have also suggested that we will meet the employees of the company,’’ Jain said. The board is planning to meet again next week, he added.

Talking about the various projects of the company, he said, Maytas Infra has a number of projects. The company has sought extension for achieving financial closure for the Hyderabad Metro Rail Project and the matter is with the government now.

“Since the company has applied for an extension, it only shows that Maytas is committed to the project,” he said adding, “We are not making any adverse comment on the company, which only means that so far we have not seen anything adverse in their functioning.”