Indian realty firm, Shapoorji Pallonji Group has sought more time, to meet some payment obligations from bondholders of group company Goswami Infratech, according to a letter seen by Reuters on Monday.
The company is required to pay around 14 billion rupees ($167.62 million) to bondholders of Goswami Infratech when it services the debt of another group company, Sterling Investment Corp.
This was set to be done by May 26, but the company has sought an extension till Sept. 30.
In the letter, Goswami Infratech wrote to Axis Trustee Services that Sterling Investment Corp. was unable to raise any new debt and a "trigger event is expected to occur on May 26, 2024".
In June, 2023, Goswami Infratech had raised 143 billion rupees through two-year and 10-month bonds at 18.75 per cent yield and investors included large private credit funds.
The Shapoorji group did not respond to a Reuters' email seeking comment. ($1 = 83.5230 Indian rupees) (Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by Sohini Goswami)