Deutsche Bank seeks 50% haircut on India firm’s debt

Bloomberg

Deutsche Bank AG and SSG Capital Management have made a joint bid for an Indian power producer’s debt of 60 billion rupees ($842 million), according to a person familiar with the matter.
The consortium has submitted a binding bid of about 31 billion rupees for the delinquent debt of Chennai-based Coastal Energen Pvt, the person said, asking not to be named as the information isn’t public. The bid seeks a haircut of about 50% on the company’s debt, excluding outstanding accrued interest, the person said.
Indian banks saddled with the world’s-worst bad debt ratio have been seeking to sell the soured loans to clean up their balance sheet. The nation’s power sector, which has been hit by fuel shortages and plummeting power prices, accounts for a significant portion of India’s $130 billion soured-loan pile.
Creditors who currently own 51% in Coastal Energen will hold about a 15% stake in the company after the proposed restructuring, the person said. Some lenders have agreed to accept the bid, while formal voting by the creditor’s committee — led by State Bank of India, is expected by the end of this month, the person added.