"We had been admitted to CDR on January 31, 2009. CDR is a time bound process where the maximum time allowed is 180 days. Based on this, the CDR process for the company is required to be completed by July 31," Subhiksha Trading Services managing director R Subramanian said in a statement.
The company expects the process to be completed as per schedule and does not believe that there are any unsurmountable issues impacting the CDR, he added.
Subramanian's latest statement is in variance from his earlier comments wherein he had maintained that the time-limit for completion of the CDR has been fixed at April-end.
Regarding recent reports about hurdles in the CDR, he said: "Subhiksha is funded by 13 banks with a total exposure of about Rs 800 crore (Rs 8 billlion).
"The CDR process is an elaborate exercise involving viability analysis and restructuring and infusion of fresh loans. Considering the large number of banks and the amounts involved, and the fact that this is the first CDR in the services sector and the rigour of the CDR process, the process is working as per schedule."
Subramanian added that all the lender banks and shareholders of Subhiksha are engaged in the CDR process.
Subhiksha, which has a chain of around 1,600 outlets across the country, has seen its operations at a standstill since January this year due to a severe liquidity crunch. The company is now seeking liquidity injection of up to Rs 300 crore (Rs 3 billion) to revive its business.
The need for a CDR often arises when a company is going through financial hardship and is having difficulty in meeting its obligations. If the troubles are enough to pose a high risk of the company going bankrupt, it can negotiate with its creditors to reduce these burdens and increase its chances of avoiding bankruptcy.
