Date:08/12/2004 URL: http://www.thehindubusinessline.com/2004/12/08/stories/2004120803260100.htm

Back Essar Oil board to discuss debt restructuring

Our Bureau

Mumbai , Dec. 7

ESSAR Oil Ltd on Tuesday informed the stock exchanges that its board of directors will meet on December 13, to consider a revised debt-restructuring package approved by lenders.

The corporate debt restructuring team, led by ICICI Bank, which reappraised the project, had last year approved the package under which the revised cost of the refinery had been assessed at Rs 9,863 crore.

There have been slight changes made to the terms and conditions approved by the lenders in the earlier CDR meeting.

A final letter of approval - called the master letter of approval in banking terms — has now been adopted by the lenders, an institutional source said.

Since many of the lenders have already reached the prudential exposure limit, they may require the RBI approval to lend more funds.

However, one way out is to treat the 12 million-tonne Vadinar refinery project and the import terminal as separate projects, the source said.

According to the earlier approved restructuring scheme, the promoters of Essar Oil were to bring in Rs 311 crore and ABB Lumus of Holland, the contractors of the refinery, were to pump in Rs 905 crore into the project. Essar Oil's Web site said the company is currently implementing the 12-million-tonne-a-year refinery project at Vadinar at a cost of Rs 9,863 crore