A consortium of creditors to Gammon India Ltd has decided to convert part of the engineering and construction company’s Rs.15,000 crore debt into equity in a prelude to changing its management in a so-called strategic debt restructuring (SDR) exercise.
The move comes at a time when Gammon is in the midst of a corporate debt restructuring (CDR) it embarked on in 2013 after falling into a crisis brought on by slower economic growth and project delays. It has been divesting assets as part of the exercise to repay debt.
