In early April, Porteast had temporarily raised its loan-to-value limit to 40% from 34% for four months through July 15 on a $3.4 billion loan raised last year.The request for more time underscores the funding pressures facing the SP Group, which has been trying since late last year to refinance debt and reduce near-term repayment risks.
Further delays may extend uncertainty around the group’s funding plans and the repayment of Porteast bonds, part of which were expected to be settled with proceeds from the transaction.Borrowings by Goswami and Porteast are backed by SP Group’s 18.4% stake in Tata Sons Pvt., the unlisted holding company of the Tata Group.
Pressure on the debt has mounted as the value of that collateral has fallen.
Tata Sons derives much of its worth from its holding in Tata Consultancy Services, whose shares are trading near a six-year low amid a broader selloff in software stocks, weighing on Tata Sons’ valuation.The $3.4 billion debt raised last May at a yield of 19.75% counts Ares Management Corp., Cerberus Capital Management, Davidson Kempner Capital Management, Farallon Capital Management, and Deutsche Bank AG among its creditors.
Most lenders have signed off on the proposed consent requests, but Ares is among those that have yet to approve the plan as it negotiates terms, the people said.Spokespersons for the SP group, Ares Management, and Farallon Capital did not respond to requests for comment.
