📑 3 India Headlines #3
The most important headlines that international readers should pay attention to – and why they matter.
🔸 India’s SP Group Floats Fresh Term Sheet for Debt Fundraise: Reuters
India’s Shapoorji Pallonji Group (SP Group) has returned to investors with a revised debt fundraising plan aimed at refinancing existing borrowings, Reuters reported, citing three sources and a term sheet. An SP Group company is looking to raise INR 255 billion (USD 2.68 billion) through the sale of three-year zero-coupon bonds.
The bonds will offer a yield of 18.95% and secured against SP Group’s stake in Tata Sons. Within 18 months of the securities being issued, either Tata Sons must be listed or an arrangement is made to allow SP Group to sell its Tata Sons shares privately at a mutually agreed price, according to Reuters.
Eveline: I wrote on 20 May 2026 that some creditors were likely betting that the Tata Sons stake is an important piece that can be monetized one way or another, but prospective lenders were also not leaving everything to chance as they had set the clock ticking for SP Group to extract some cash from its shareholding.
The latest terms suggest investors are tightening the bolts even further, as The Economic Times reported that SP Group’s financing would include a deleveraging covenant requiring repayment of at least INR 135 billion (USD 1.4 billion) within 24 months of issuance. Failure to meet the repayment obligation would constitute an event of default.
Nearly six months ago, I noted that SP Group had taken the game of high-yield musical chairs to a new level, as its borrowing costs kept rising while the company, lenders and arrangers were all hoping to eventually cash out the Tata Sons prize. But it seems like not everyone can stomach these musical chairs on steroids.
Traders in Singapore and Hong Kong have been offering the non-convertible debentures of SP Group’s subsidiary Goswami Infratech at about 90% of par in the past two weeks, although it wasn’t immediately clear whether any trades were executed, Bloomberg reported on 29 June 2026.
🔸 Global Creditors Drag Udaan’s Parent to Bankruptcy Court in Singapore After $170 Million Bond Default: The Economic Times
Global creditors of Udaan, including banks and hedge funds, have initiated insolvency proceedings in the Singapore High Court after its offshore holding company Trustroot Internet defaulted on $170 million compulsorily convertible notes due on 30 June, The Economic Times (ET) reported, citing people aware of the development.
The creditors have hired Alvarez & Marsal as the official liquidator in the bankruptcy proceedings, according to ET. DealStreetAsia (DSA) also reported that lenders to the B2B e-commerce unicorn have engaged Singapore law firm WongPartnership to represent them in the case.
Eveline: Creditors in emerging markets face a common challenge of recovering any value if the defaulter is the offshore holding company while the operations or assets of the borrower are mainly onshore.
An Udaan spokesperson told DSA that “the matters referenced relate to ongoing restructuring negotiations and offshore proceedings among offshore stakeholders at the offshore holding company level.”
The Udaan spokesperson reportedly said these matters have no bearing on its operating entities in India and the startup’s team in the country run the day-to-day business. In short, Udaan’s stand is that it’s business as usual onshore.
Investors in Indian companies will likely watch the outcome of the Singapore court proceedings and whether Udaan’s creditors could get any of their money back.
🔸 Jet Airways Liquidation: NCLAT Backs Full Provident Fund, Gratuity for Staff
India’s National Company Law Appellate Tribunal (NCLAT) has upheld a key relief to former Jet Airways employees, ruling that their provident fund, pension and gratuity dues must be paid in full and kept outside the liquidation pool from which other creditors, including banks, will be paid, Bar and Bench reported.
Eveline: This is not surprising as some payments owed to former employees are usually protected in a liquidation. The effect, however, is that the pie may become smaller for other creditors, especially if the company being liquidated has a limited pool of assets.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.