New Delhi: The Tata Mistry Battle may be ready for its next chapter in the Supreme Court. The Shapoorji Pallonji Group is reportedly gunning for a court-monitored separation in the Tata-Mistry case. ET Now learnt from sources in SP Group that Shapoorji Pallonji Group is likely to make a formal representation of separation in the Supreme Court in the next hearing.
Sources have also indicated that an out of court settlement can take place if a fair settlement is done. Even though in the current circumstances it looks highly impossible. Speaking of valuation, sources have indicated that the talks of reaching the right valuations will only come when the settlement process has started.
The sources further told Now that no backchannel talks have taken place between Tata Sons and SP Group. "Won't mind a settlement outside court if a fair settlement is done," the sources said. The Group is also likely to move a separation request in court in the next hearing.
To recall, Tatas had on September 5 moved the Supreme Court to block the SP Group's plans to pledge a portion of its 18.37 per cent stake in Tata Sons -- which it has been holding for the past seven decades and has valued at over Rs 1.78 lakh crore -- to raise Rs 11,000 crore.
Accepting the Tatas' petition, the Supreme Court on September 22 asked both the parties to maintain status quo on shares till October 28 when it will pronounce the verdict on the Tatas' petition challenging the NCLAT reinstating Cyrus Mistry as the Tata group chairman and Mistry's petitions seeking to protect the rights of minority shareholders. Following this, the SP Group informed the apex court that it wants to end the 70-year-old association with the Tatas.
Accepting the Tatas' petition, the Supreme Court on September 22 asked both the parties to maintain status quo on shares till October 28 when it will pronounce the verdict on the Tatas' petition challenging the NCLAT reinstating Cyrus Mistry as the Tata group chairman and Mistry's petitions seeking to protect the rights of minority shareholders. Following this, the SP Group informed the apex court that it wants to end the 70-year-old association with the Tatas.
As per officials, SP Group will restructure Rs 10,900 crore of its debt under the resolution framework for pandemic-related stress. The relief is being sought under the one-time loan restructuring plan approved by the Reserve Bank after it accepted the KV Kamath panel report, which allows financially stressed companies to recast their debt for two years, the official said.
Worth mentioning here is that the Mistry family owns 18.37 per cent shares (both listed and unlisted) in Tata Sons, the holding company of the Tata group. The construction and real estate sectors, the mainstay of the SP Group, have been badly hit by the pandemic. In fact, according to officials, the promoters had infused over Rs 3,000 crore over the past two years into the group to strengthen its balance sheet.
Tata Sons has reportedly set up a task force to prepare a contingency funding plan to buy the Shapoorji Pallonji Group’s 18.4% stake in the company at a valuation that will be at the centre of a hard-fought battle in the Supreme Court.