InvestorQ : Is it true that Murugappa group is taking over CG Power?
Aashna Tripathi made post

Is it true that Murugappa group is taking over CG Power?

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Aditi Sharma answered.
4 months ago
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Banks that have lent money to CG Power and Industrial Solutions agreed to a one-time loan restructuring which will pave the way for Murugappa Group to take over. CG Power was caught in a bind after its chairman Gautam Thapar was removed over money laundering charges. CG Power currently has total debt of Rs.2161 crore owed to 14 banks.

Tube Investments will invest Rs.700 crore in CG Power for a 56.61% majority stake. This will be part of one-time settlement and restructuring of funded facilities and guaranteed debt. Lenders will be paid Rs.650 crore; nearly Rs.200 crore of debt will be converted into 5-year NCDs and CG property will be sold.
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