Because of 2 reasons broadly:
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Standalone debt will be around 300 Cr and they are already defaulting on 250 Cr, given that the debt was structured couple of years back such that FY20 had bullet repayment of over 190 Cr. which obviously company was unable to service given its CFO and this bullet payment was postponed to FY22 which turned out to be a COVID hampered year. Now maybe even lenders have accepted that a sustainable solution will only be OTS because these debts have been outstanding over 7 years now and company will not be in a position to honor bullet repayment even in future.
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Lenders are all ARC/NBFC even for standalone debt, they do take into consideration time value of money when structuring a deal. If they feel net net they will be well off doing a OTS where they either are expected to receive part payment upfront in cash and or part debt converting to equity as mentioned in notes.
I feel this is the only sustainable solution for standalone debt because these lenders are charging above 18% interest so on 300 Cr debt, interest payment comes out to be over 50 Cr annually, let alone the principle repayment component. Post OTS they can again enter banking channel with lower interest cost but all these will be possible if current lenders take some haircut, settles for longer repayment schedule, part conversion into equity etc.
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