InvestorQ : How bad is the situation with Lodha Developers and is true that the builder is on the verge of defaulting?
Dilmini Mercia made post

How bad is the situation with Lodha Developers and is true that the builder is on the verge of defaulting?

Answer
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Dhwani Mehta answered.
7 months ago


Lodha, one of India’s top real estate developers, is trying to sell a complex debt offering that is essential for the group to avoid a default. Lodha group needs to refinance its existing $324 million note maturing on 13 March 2020. The company must meet conditions involving setting aside cash before it can tap the proceeds of the bond. Lodhas run the business under the corporate brand name of Macrotech Developers Ltd. Even before the Chinese virus syndrome, real estate developers had been grappling with slowing demand. But risks are still quite high for the company. For example, selling the new note is key because Lodha Developers have no alternate financing arrangements. That means; if the new issue is derailed then Lodhas could slip into default.