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Rediff News  All News  » Business » Parsvnath promoters pledge 10% shares

Parsvnath promoters pledge 10% shares

February 03, 2009 11:44 IST

Pradeep Jain, founder of New Delhi-based real estate developer Parsvnath, said he had pledged 10 per cent of the promoter's shares with lenders to fund expansion plans.

He declined to give more details. Jain and his family members own more than 80 per cent of the company.

The cash-strapped real estate developer is in talks with banks to restructure its outstanding debt of Rs 1,825 crore (Rs 18.25 billion).

The company is seeking longer repayment tenure with a one-year repayment moratorium, Jain said.

"We want to restructure the entire outstanding debts we have. The cash balance generated due to the delay in repayment of debts will be used to fund our existing projects," he added.

BS Reporter in Mumbai