Tata expected to avoid defaulting on its $1 billion debt
By Andrew C., 30 Aug, 2010. 0 Comments
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After the banks signified that they will be extending an impending loan payment until the end of next year, the Indian carmaker Tata is expected to avoid defaulting on its $1 billion debt which is due next Friday. This agreement will complete the refinancing of a $3 billion bridge loan that the carmaker took out last year to fund its acquisition of Jaguar-Land Rover. The estimated losses of Tata Motors covering operating losses since the demand for cars fell last year amounted to $1.27 billion to $1.43 billion. The carmaker has been trying to get aid from the government of the UK in excess of $1.27 billion in order to build up capital, although it has been slow moving. At present, the carmaker has already prepaid its bridge loan via equity fundraising and other means in the amount of $1.11 billion . An extra $885 million was raised this week from a domestic bond issue, a transaction that has prepared the rollover of the $1.05 billion bridge loan balance.
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