DSK Group says it will not be able to pay debenture dues
City-based real estate company DS Kulkarni Developers Ltd (DSK) said it will not be able to pay debenture dues that mature on September 6. This will make it the third straight miss for the company in as many months for payments of dues against the non-convertible debenture payments.
According to its annual report of 2015-16, the company on September 6 will owe at least Rs 51.72 crore to the NCD holders under option-I of the scheme. The total outstanding due for of the company , including all four options, is about Rs 111 crore.
Ratings agency CARE has downgraded the company’s NCD’s to D meaning the company has little or no capacity to service its interest obligations.
“Considering the continuing financial crunch, the company will not be able to be able to make payment of redemption proceeds and the payment of outstanding interest on NCDs on due date,“ the company said in a filing to BSE.
The company said it is in the process of financial restructuring with the help of debenture trustees and will decide future course of action on September 7.