Realty firm Shapoorji group seeks more time to clear bondholder payments

Indian realty firm Shapoorji Pallonji Group has sought more time to meet some payment obligations from bondholders of group company Goswami Infratech, according to a letter seen by Reuters on Monday. The company is required to pay around 1,400 crore rupees ($167.62 million) to bondholders of Goswami Infratech when it services the debt of another group company Sterling Investment Corp.In the letter, Goswami Infratech wrote to Axis Trustee Services that Sterling Investment Corp was unable to raise any new debt and a "trigger event is expected to occur on May 26, 2024". In June 2023, Goswami Infratech had raised 14,300 crore rupees through two-year and 10-month bonds at 18.75 per cent yield, and investors included large private credit funds. The Shapoorji group did not respond to a Reuters' email seeking comment.