Economy & Market

ABG Cement may receive a debt restructuring package

Published

8 years ago

September 30, 2016

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The new promoter is asking for refinancing of debt and an extension of repayment period.

Lenders to ABG Cement Ltd are in the process of finalising a debt restructuring package for the company, after a recent management change, two people with direct knowledge of the matter have been quoted as saying in the Mint newspaper.

According to the report, global commodities platform SIMEC Group bought a 51 per cent stake in ABG Cement for Rs 525 crore and initiated a management change in the company earlier this financial year.

SIMEC has submitted a proposal to Punjab National Bank (PNB), the lead lender in the ABG Cement case, to reschedule payments of loans worth Rs 2,400 crore. SIMEC has circulated this proposal among other lenders in the consortium seeking their approvals, one of the two people cited above said in the report, requesting anonymity. Under the proposal, the new promoter was asking for refinancing of debt and an extension of repayment period, says the source quoted in the news item.

In September, the RBI had stated in a circular, "In order to further enhance banks? ability to bring in a change in ownership of borrowing entities which are under stress primarily due to operational/ managerial inefficiencies despite substantial sacrifices made by the lending banks, it has been decided to allow banks to upgrade the credit facilities extended to borrowing entities whose ownership has been changed outside SDR, to ?Standard? category upon such change in ownership."

A source is quoted in the news item as saying, "Since it is not a case of restructuring, we don?t have to make any large provisions against the case. Moreover, the new promoter also gets some breathing space as lenders will be working on the case like it is a standard account."

SIMEC had first agreed to buy ABG Cement in 2014. However, the deal was delayed owing to concerns around valuation of the business and funding problems. ABG Cement, which is part of the group that also owns ABG Shipyard Ltd, currently runs a 6 million tonnes per annum cement plant in Gujarat. The move in ABG Cement becomes significantly important as the attempts at managing the stress at ABG Shipyard have not led to any satisfactory results.

Earlier, ABG Shipyard had said that its shareholders had rejected the lender?s plan of converting debt into majority equity under the SDR route. Last year, the lenders had first agreed to take majority equity in the shipyard, under SDR norms. With the proposal being rejected, lenders would be struggling to find a reasonable loan resolution mechanism for the company.

Concrete

thyssenkrupp Polysius, SaltX partner for electrified production

Published

4 hours ago

March 12, 2025

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thyssenkrupp Polysius and Swedish startup SaltX have signed a Letter of Intent (LOI) to co-develop the next generation of electrified production facilities, advancing industrial decarbonisation. Their collaboration will integrate SaltX’s patented Electric Arc Calciner (EAC) technology into thyssenkrupp Polysius’ green system solutions, enabling electric calcination, replacing fossil fuels with renewable energy, and capturing CO2 for emission-free production. Dr Luc Rudowski, Head of Innovation, thyssenkrupp Polysius, emphasised that this partnership expands their portfolio of sustainable solutions, particularly in cement, lime, and Direct-Air-Capture (DAC). Lina Jorheden, CEO, SaltX, highlighted the significant CO2 reduction potential, reinforcing their commitment to sustainable industrial processes.

Concrete

Terra CO2 secures $82m to scale low-carbon cement technology

Published

4 hours ago

March 12, 2025

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Terra CO2, a US-based sustainable building materials company, has raised $82 million in Series B funding, co-led by Just Climate, Eagle Materials and GenZero, with continued support from Breakthrough Energy Ventures. The investment will accelerate the commercial deployment of Terra’s OPUS technology, enabling the construction of multiple production facilities across North America and Europe. With the cement industry responsible for 8 per cent of global CO2 emissions, Terra’s solution provides an immediate, scalable alternative using abundant raw materials that integrate seamlessly with existing infrastructure. The company has secured key partnerships, including a deal with Eagle Materials for multiple 240,000-tonne plants.

Concrete

Titan Cement Group enters South Asia

Published

4 hours ago

March 12, 2025

Roshna

Titan Cement Group has expanded into the South Asian market through a joint venture with JAYCEE, an India-based producer of supplementary cementitious materials. Titan will hold a majority stake in the newly formed company, Atlas EcoSolutions, which will focus on sourcing, processing, marketing, and distributing SCMs globally. This initiative aims to support sustainable construction by promoting alternatives to clinker-based cement. Jean-Philippe Benard, Head of Supply Chain and Energy Development, emphasised that the venture aligns with Titan’s strategy to lead in low-carbon building materials while reinforcing its commitment to sustainability and innovation. The move strengthens Titan’s position in a high-growth market while ensuring long-term access to SCMs.