After Hindenburg crisis, Adani group in talks with lenders to refinance $3.8 billion debt: Report

The Adani group is in talks with the lenders to refinance loans up to $3.8 billion, taken to acquire Ambuja cements, reported Bloomberg News. As per the report, the group is considering converting the the original loan into debt with a longer maturity period. The conglomerate has also started talking to the banks regarding the plan.

As per Bloomberg, The port-to-power conglomerate expects to conclude the process within four months and most of its existing lenders, including Barclays, Deutsche Bank, Standard Chartered and Mitsubishi Financial Group, are expected to participate. However, the deal is yet to be finalised.

Adani group acquired ACC and Ambuja Cements for $10.5 billion that was financed by bridge loans. A bridge loan is a short-term loan used until a person or company secures permanent financing or pays an existing obligation.

As per Economic Times, the group was looking to renegotiate terms of outstanding loans worth $4 billion taken last year to buy the cement firms.

The Hindenburg research cited Adani group's high debt level as one of the major concerns against it. While the U.S based short seller accused the conglomerate of improper use of tax havens, the Adani group had called the report baseless. Since the release of the Hindenburg report, it has garnered investor support and has repaid debt.