India’s Godawari misses principal, interest payment on debentures

By Wendy Van Sickle

Columbus, Ohio, July 22 – Godawari Power & Ispat Ltd. was unable to make the principal repayment and interest payment due June 15 for two series of its secured redeemable nonconvertible debentures, according to a Bombay Stock Exchange notice.

The company said it missed a Rs. 208.3 million installment payment, plus a Rs. 12.4 million interest payment, and a Rs. 37.5 million installment payment, plus Rs. 4.8 million of interest.

Additionally, the company said it missed an installment and interest payment on its term loans.

Godawari attributed its failure to make the payments to adverse market conditions in the iron and steel industry, resulting in reduced operating margins leading to “cash flow problems in the company.”

Based in Raipur, India, Godawari Power is a manufacturer of steel wires.

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