Reuters reported that Indian stainless steel maker JSL Stainless Limited expects to come out of its corporate debt restructuring by September 2012, much before the original deadline of March 2020, as the new plant in Orissa is expected to stabilize and enhance cash flows.

Mr Arvind Parakh director finance of JSL told Reuters that "By September 2012, we should be exiting corporate debt restructuring."

JSL, which has a total debt of about INR 7,500 crore including about ISD 600 to USD 700 million in overseas loans, got its lenders to recast debt last year after a global downturn curtailed its expansion plans and made repayments difficult.

The CDR brought down interest cost and stretched repayment period to a maximum of 10 years for JSL.

Mr Parakh said that the partly operational 1 million tonne new steel capacity in Orissa will double the firm's top line in FY 2013, boosting cash flows and profits and helping the firm exit CDR. JSL has another facility in Haryana with 780,000 tonne capacity.

An exit from CDR will raise the average borrowing cost for the firm to about 10% to 12% from 8% now and the firm plans to refinance part debt with foreign currency loans to keep the overall cost low.

(Sourced from www.reuters.com)