Adani Group In Talks With Lenders For $3.8 Billion Debt Refinancing Amidst Hindenburg Controversy

The Adani Group is now in talks with lenders, including major banks, to restructure a loan facility worth up to $3.8 billion. This loan was initially obtained for the acquisition of Ambuja Cements Ltd. in the previous year, according to sources familiar with the matter. This development comes after the Hindenburg Research report last year raised allegations of financial misconduct and governance issues against the group's flagship company, Adani Enterprises.

The ports-to-power business founded by Indian tycoon Gautam Adani is considering converting the initial loan into debt with a longer maturity date, according to persons who asked not to be identified because the conversations are private.

The attempt is a key litmus test for whether the company's global credit lines will be reopened after US shortseller Hindenburg accused the Adani Group of massive corporate wrongdoing in January. Adani has refuted the charges.

Adani expects the process to be completed in three to four months and that most of the existing lenders will participate. Adani's spokeswoman did not immediately react to a request for comment.

Banks such as Barclays Plc, Deutsche Bank AG, Standard Chartered Plc, and Mitsubishi UFJ Financial Group Inc. are in talks to participate in the refinancing plan, according to the sources, and some of the lenders have gone to their respective international credit teams for clearance. Barclays, Deutsche, MUFG, and Standard Chartered did not respond to requests for comment. The agreement has not yet been finalised and may not go forward.

If the strategy is implemented, it will be the latest indicator that the conglomerate is back to business as usual after months of damage repair following Hindenburg's withering onslaught, which wiped out more than $150 billion from the company's stock.

A team of specialists established by India's Supreme Court also stated in a report last month that there is no regulatory failure or misconduct behind the big swings in Adani equities. Still, after concluding its investigation into the shortseller's charges against Adani Group, India's securities commission is scheduled to issue another decision in August.