Ap Versus Tg Godava....

[mukunda1]

Andhra Pradesh Power Finance Corporation defaults in debt servicing 

 

 

KOLKATA: Amid the Amtek Auto controversy, the state-run Andhra Pradesh Power Finance Corporation has defaulted in debt servicing on bonds worth Rs 3,100 crore while the sister states Andhra Pradesh and Telengana are at loggerheads over who will should be responsible for paying bond holders. 

The erstwhile power finance company of the united state government was bifurcated into Andhra Pradesh Power Finance Corporation and Telengana State Power Finance Corporation and both are in consta .. 

"Despite our continuous effort, the Corporation does not remit the shortfall (in interest payment)," said State Bank of Hyderabad, which was the debenture trustee for the bond, in a letter to investors on September 19. A copy of the letter is in possession of ET. 

Crisil Ratings has downgraded the bonds by five notches to `D' from `A' on September 25, almost three weeks after the company defaulted; raising doubts over rating companies' ability to warn investors on time. It had earlier  .. 

Read more at:
http://economictimes.indiatimes.com/articleshow/49139820.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

News Came on :- 09/28/2015

[tom bhayya]

[mukunda1]

 

The company under the united Andhra Pradesh government raised a total of Rs 3100 crore in three separate bond issues in 2012. The company was supposed to pay Rs 151 crore of interest on these bonds while it had only paid Rs 87.7 crore, resulting a shortfall of Rs 63.3 crore. 

[mukunda1]

Evadu pay seyyali aa migilina 63 crores adyaksha.. %$<

[mukunda1]

Update on 10/8/2015

 

[mukunda1]

Update on 10/08/2015

 

Investors suffer as Andhra Pradesh, Telangana slug it out 

 

HYDERABAD: Disputes between Andhra and Telangana over financial liabilities of institutions set up before the two Teluguspeaking states were divided is affecting institutional investors, provident fund trustees and government agencies. 

 

Bureaucrats of both states told ET more disputes are likely to unfold, given the complicated nature of the division of assets and liabilities between them. 

 

Rating companies, which favourably assessed the debt instruments of the former, combined Andhra Pradesh, are now looking at reviewing their evaluation of outstanding debt instruments. The rating companies are advising investors to thoroughly assess the risks on account of the disputes before taking any decision and to also insist on additional sovereign guarantees to safeguard their interests. 

The wrangling persists even as the World Bank ranked Andhra the second-best state in India in the ease of doing business and rating agency Icra assigned 'A' category to Telangana in revenue and tax collections. 

The Telangana government disputed the deduction of over Rs 1,274 crore by the income tax department towards its share of dues from the Andhra Pradesh Beverages Corporation. Some companies that were set up under the unified state have defaulted on payments to bondholders as the two new government determine how the liability should be shared. "While AP has been paying its portion of liabilities on time, Telangana is disputing its portion of liabilities post-bifurcation and hence the defaults," said P Satya Moorthy, finance and revenue director with AP Power Generation Corporation. "This was informed to the rating agencies and investors." 

The State Bank of Hyderabad, trustee for bonds issued by the Andhra Pradesh Power Finance Corporation (APPFC), announced on Saturday the company had de faulted on payment of interest on several series of bonds worth over Rs 5,053 crore. 

 

While the bondholders were informed about the default, they have been called for a meeting on October 14 to elicit their views and chart a course of action, Murali, an assistant general manager at SBH, told ET. 

Telangana energy secretary Arvind Kumar said although APPFC is a Schedule IX institution under the Andhra Pradesh Reorganisation Act 2014 for division among the two states on the basis of population, the apportionment of liabilities was done on the basis of power consumption. 

 

"As against liabilities of Rs 2,456.9 crore of Telangana on population basis, an amount of Rs 3,509.6 crore was unilaterally imposed by APPFC on Telangana State Power Finance Corporation, which translates into an excess liability of Rs 1,052.7 crore," Kumar said.  ..>

"We have written umpteen number of letters to APPFC to rectify the anomaly. We have been paying interest on bonds in accordance with the outstanding liabili ties calculated on popula tion basis." Rating agency Crisil last fortnight down graded six series of bonds issued by APPFC between 2004 and 2012 to 'D' from 'A' assigned at the time they were issued.On June 11 last year, a week after Telangana was carved out of the erstwhile Andhra, the rating agency said it had decided to monitor "how the bifurcation of assets and liabilities happens between the respective government entities for the states of Telangana and Andhra Pradesh." 

 

Crisil said it is "in the process of engaging with the other government of AP entities, their trustees and the guarantor to assess any potential impact of similar disputes on their debt servicing." 
 

 

 

Read more at:
http://economictimes.indiatimes.com/articleshow/49238646.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

[puli_keka]

telugu lo cheppu   bye1   entha baaki ..evaru kattali.. share enti 

[athletics]

telugu lo cheppu bye1 entha baaki ..evaru kattali.. share enti

Actual news is combined AP lo bonds petti loans 5k+ crores tesukunnaru SbH daggara AP electircity board; interst paymentss defaulted eppudu;

Back ground vachi: AP electircity board TG 3.3+k baki ani chepte memu only 2.3knki liable based on population basis counter esindi