New Delhi: Billionaire in trouble Gautam Adani is in talks with creditors to prepay some loans backed by pledged shares as it seeks to restore confidence in the financial health of its group, a person with knowledge of the matter said.
The move will help lenders release some stock Adani group companies According to that person the pledge was made as collateral. The Indian group has not faced margin calls on these pledges and is actively seeking prepayments, said the person, asking not to be identified as the details are private.
while no such suggestion has come Adani Group Institutions will struggle to make soon-due dollar loan payments and the group has marked interest coverage ratios indicating it has the ability to meet such obligations, with some banks offering the group’s securities as collateral in client trades. has ceased to be accepted as such.
Adani Ports and Special Economic Zone Ltd paid on dollar bonds as scheduled Thursday, a modicum of consolation for investors shaken by the intense turmoil.
One Adani A representative for the group did not immediately respond to an email seeking comment outside business hours in Mumbai.
destruction of wealth
The tycoon’s businesses lost $108 billion in market value in a week, the biggest wipeout in India’s history, following an explosive report by short-seller Hindenburg Research.
The major priority is to address any concerns regarding the margin call, the person said, adding Adani officials will speak with investors in the coming days and make all payments on time.
Some market participants are now seeing an opportunity in selling. Goldman Sachs Group Inc and JPMorgan Chase & Co have told some clients that Adani-related bonds may offer value due to the strength of certain assets.
Adani, who became the world’s second-richest man last year, has dropped out of the list of the world’s 10 richest people after Hindenburg accused his companies of fraud to inflate revenue and stock prices. His group flagship Adani Enterprises Ltd abruptly withdrew the offer late Wednesday, after attracting funds from Middle Eastern and other Indian billionaires to raise a $2.4 billion share sale.
The move will help lenders release some stock Adani group companies According to that person the pledge was made as collateral. The Indian group has not faced margin calls on these pledges and is actively seeking prepayments, said the person, asking not to be identified as the details are private.
while no such suggestion has come Adani Group Institutions will struggle to make soon-due dollar loan payments and the group has marked interest coverage ratios indicating it has the ability to meet such obligations, with some banks offering the group’s securities as collateral in client trades. has ceased to be accepted as such.
Adani Ports and Special Economic Zone Ltd paid on dollar bonds as scheduled Thursday, a modicum of consolation for investors shaken by the intense turmoil.
One Adani A representative for the group did not immediately respond to an email seeking comment outside business hours in Mumbai.
destruction of wealth
The tycoon’s businesses lost $108 billion in market value in a week, the biggest wipeout in India’s history, following an explosive report by short-seller Hindenburg Research.
The major priority is to address any concerns regarding the margin call, the person said, adding Adani officials will speak with investors in the coming days and make all payments on time.
Some market participants are now seeing an opportunity in selling. Goldman Sachs Group Inc and JPMorgan Chase & Co have told some clients that Adani-related bonds may offer value due to the strength of certain assets.
Adani, who became the world’s second-richest man last year, has dropped out of the list of the world’s 10 richest people after Hindenburg accused his companies of fraud to inflate revenue and stock prices. His group flagship Adani Enterprises Ltd abruptly withdrew the offer late Wednesday, after attracting funds from Middle Eastern and other Indian billionaires to raise a $2.4 billion share sale.