(Bloomberg) -- Goswami Infratech Pvt., controlled by billionaire Shapoor Pallonji Mistry, is in talks with Deutsche Bank AG to raise as much as 25 billion rupees ($299 million) through debentures to pay dues on India’s biggest high-yield rupee corporate bond, according to people familiar with the matter.
While working with the German lender on a fund raise through issuance of debentures, the New Delhi-based company is simultaneously talking with existing creditors to push back an 18 billion rupees payment due Sept. 30 on its 143 billion rupee debt, they said, asking not to be named as the information is not public. The company is seeking time till Jan. 31 to pay the due, according to the people.
The debt-repayment struggle by the firm, which is part of conglomerate The Shapoorji Pallonji Group, underscores broader risks faced by global private credit investors flocking to emerging markets. India has been among the hot spots in Asia, with credit investors looking for opportunities to scale up in the world’s fastest-growing major economy.
When the company offered the debt in June last year, money managers flocked to the deal, which offered a juicy 18.75% yield. Holders of the firm’s debt include Cerberus Capital Management LP, Varde Partners LP, Davidson Kempner Capital Management LP and Canyon Capital, according to a report by Praxis Global Alliance in April.
A spokesperson for Deutsche and a representative for Goswami Infratech didn’t respond to requests for comment.
In May, Goswami Infratech had gotten the backing of creditors to push a 14 billion rupee payment that was coming due on the bond to a date no later than Sept. 30, Bloomberg News had reported.
The investment company, which holds stakes in different SP Group firms, including ports and a construction company, has been struggling with a liquidity crunch. To pare debt, it had agreed to sell a majority stake in Gopalpur Ports Ltd. to Adani Ports and Special Economic Zone Ltd. to tide over the cash shortage.
(Updates with details of the loan from second paragraph onwards.)
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