INSUBCONTINENT EXCLUSIVE:
Mumbai:HDFC Mutual Fund has marked down the value of its schemes with exposure to the papers issued by Hazaribagh Ranchi Expressway (HREL)
by another 12% after the issuer failed to make annuity payments, principal and net worth ?52.7 crore as on April 14.
This takes the total
markdown in the security to 37% after a 25% markdown in the security in January 2019
?232.5 crore.
In a note to investors and distributors, HDFC Mutual Fund pointed out that the National Company Law Appellate Tribunal
(NCLAT), vide its order dated February 11, 2019, had lifted the moratorium on international entities of ILFS as well as entities classified
as Green.
However, in the case of other entities, especially the Amber entities, NCLAT continues to hear arguments from the concerned
its secured obligations, ie the NCD issuance in which HDFC MF has invested
However, the 13th annuity payment from NHAI scheduled on March15, 2019, has not been received yet due to operational delays by HREL.
Such
operational delays in receipt of annuity have also occurred in the past
The delay in receipt of annuity does not hamper the capability of HREL servicing the payment obligation of Rs 52.7 crore due on April 14,
2019, with the available of approximately ?83 crore in cash
HDFC Mutual Fund continues to make legal representations at the NCLAT to lift the moratorium imposed on Amber companies so that the
?12 crore was due on April 14, 2019
In addition, all the above schemes were due to receive interest totalling to nearly ?10 crore on the same day.
