Essar Energy, the India-focused integrated energy company, reported that its subsidiary Essar Oil Ltd has reached an agreement with its lenders to exit from a Corporate Debt Restructuring (CDR) loan facility set up in December 2004 which facilitated the construction of its Vadinar refinery in Gujarat.

The CDR facility will be replaced with a new Rs 94 billion (c.US$1.7 billion) debt facility on mutually acceptable commercial terms from a similar group of lenders.

Lalit Gupta, Chief Executive Officer, Essar Oil, said: "The CDR exit marks a significant step forward for the Company. We are pleased to have built an excellent working relationship with our lenders and the new loan facility, along with the recently completed expansion of the refinery, paves the way to move positively into a new phase of growth."

Tags: Essar Energy