Imminent default on $1 billion avoided as banks agree new deal
22 May 2009

Tata is expected to avoid defaulting on $1 billion (£660m) of debt, after banks indicated they would extend an upcoming loan payment until the end of 2010.

The news is crucial to Tata's future, as the $1 billion was due to be repaid next Friday. This dealwill complete the refinancing of a $3 billion (£1.9bn) bridge loan Tata Motors took out last year to finance its purchase of Jaguar-Land Rover.

Tata is estimated to have lost £800m-£900m covering operating losses since car sales slumped last year. It is also seeking UK government loan guarantees worth more than £800m to raise further capital, although progress has been slow.

Tata has alrady prepayed $1.11bn (£700m) of its bridge loan through equity fundraising and other measures.

This week, it raised an additional $885 million (£560m) from a domestic bond issue, a deal that has set the stage for the rollover of the $1.05bn remaining of the bridge loan.

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16 December 2016
I honestly don't have high hopes for anybody in the car manufacturing business to safely come out of their financing loans without defaulting on a portion of the loan. There is just so much uncertainty in the economy right now and so much of the problems are coming from manufacturing and car production that it just doesn't look very bright in the future for the industry unless they figure out how to solve the base problems.

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