Shapoorji Pallonji The group said on Tuesday that its loan from Power Finance Corporation (PFC) has a double protection structure, which also includes a portion of Tata Sons shares owned by the Mistry family. Denying reports that the loan from Power Finance Corporation (PFC) was “protected from default”, the SP Group said that the cash flow from its real estate franchise will ensure full repayment of the loan within the stipulated period. The group said in a statement, “We are fortunate that we have worked together with PFC over the last nine months to create a unique proposition that has a double security structure, leveraging the strength of the SP Group’s large real estate franchise as well as a portion of Tata Sons shares owned by the Mistry family.
15,000 crore loan case
It said, “This provides a security value of more than six times the loan value. The cash flow from the real estate franchise will ensure timely repayment of the loan.” The group claimed that the entire proposal has been validated by reputed third party advisors. According to the SP Group, it received a formal acceptance letter on June 14, 2024 after the approval of the PFC board.
The independent director had raised the question
Some reports citing sources claimed that the independent directors of PFC have raised questions on the recent loan of Rs 15,000 crore given to SP Group. The director said that PFC does not finance the infrastructure business. Then how was this loan given? The company works in giving loans in the energy sector.
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