India Ratings and Research took off the Rating Watch Negative (RWN) status on the Tamil Nadu Generation and Distribution Corporation’s (Tangedco) ‘bank loans’ citing prolonged resolution period of insolvency cases against the State utility.
In December 2021, the ratings firm had placed RWN ratings on the term loans after vendors had approached the National Company Law Tribunal (NCLT) against Tangedco. The loans include long-term loans, cash credit working capital limits and non-fund based working capital limits.
The resolution was monitored throughout the ‘watch period.’ As more operational creditors have been reaching out to the NCLT for the recovery of past dues from Tangedco, the agency said it continued to monitor the events.
