GMR Infrastructure Friday announced the execution of a bilateral resolution plan between its associate company, GMR Rajahmundry Energy (GREL), and the GREL lenders.

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According to the resolution plan, which has been approved by all the lenders, the existing debt of Rs 2,353 crore has been brought down to a sustainable debt of Rs 1,412 crore.

Against this sustainable debt, the GMR Group has already infused Rs 395 crore towards meeting 20 percent of principal for repayment of the debt and the interest servicing obligations of the GREL for the first year.

This leaves balance outstanding sustainable debt of Rs 1,130 crore, carrying a floating rate of 9 percent per annum repayable over 20 years.

The balance debt of Rs 941 crore has been converted into long-dated cumulative redeemable preference shares (CRPS) carrying 0.1 percent, which is repayable from 17th to the 20th year, the company said.

The first-of-its-kind resolution plan offers a mutually beneficial resolution for the lenders and the company through a long-term solution for the existing debt and related obligations of the group," Grandhi Kiran Kumar, Managing Director and CEO of GMR Infrastructure (GIL) said in a statement.

It has reduced the debt for GMR Group and we believe this will de-risk the group substantially, Kumar said, adding that this also offers quality assets built on the ground an opportunity to perform to its potential.

The resolution plan shall be rewarding to GMR Group and lenders as they continue to own 45 per cent and 55 percent of shareholding, respectively, it added.