Parsvnath overdue payments at Rs 143 crore

Parsvnath Developers has said its ‘overdue payments’ stood at Rs 63 crore and Rs 143 crore as on July 1 and August 31, respectively, under loan agreements and other outstanding indebtedness. The company said this in its Preliminary Placement Document filing on the NSE.
The company’s Chairman, Mr Pradeep Jain, was not available for comments, despite repeated attempts.
Meanwhile listing out the risk factors, the document by Parsvnath said, “We had overdue payments of Rs 631.13 million and Rs 1,433.57 million, as of July 1, 2009, and August 31, 2009, respectively, under our loan agreements and other outstanding indebtedness with an aggregate outstanding balance of Rs 16,370.77 million and Rs 17,849.51 million as of June 30, 2009, and August 31, 2009, respectively.”
The amount of overdue indebtedness has not increased since September 1, it said.
Parsvnath said it has not yet received any notice of default from financial institutions and banks.
“Some of the unpaid amounts have been overdue for more than 60 days, and continued delays in payment will trigger additional cross-defaults under other agreements,” it said.
The company pointed out that its promoters have disclosed that as on September 21, 62.4% of the total outstanding shareholding of the company has been pledged by them to banks, financial institutions and other lenders. “Given that substantial portion of the shareholding of the promoters has been pledged to banks and financial institutions, as a result of any default under the financing documents, the banks and financial institutions may sell the equity shares pledged to them in the open market, thereby, diluting the shareholding of the promoters,” it said.
Speaking to Business Line last week, Mr Jain had said the company would raise between two hundred fifty crore to five hundred crore rupees through QIPs issue, and that 60% of the QIP proceeds will go towards reducing the company’s debt.

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