SD Corporation, a wholly-owned company of Shapoorji Pallonji Company, has rescheduled coupon payments on its ₹750 crore bonds by two months to March 31, 2024. The company, which is engaged in the redevelopment of old residential buildings and colonies in Mumbai, had scheduled a coupon payment on 5.5% unlisted senior secured bonds of ₹750 crore due on January 31, 2024. According to people with knowledge of the matter, the bondholders have agreed to reschedule the coupon payment to March 31 at 12%, which will be payable half-yearly.

The existing bondholders have also agreed to reschedule the principal repayment from December 2024 to March 2025. The revised terms also include a structured payment mechanism, which stipulates that if there is a shortfall or delay in payment by SD Corporation (which is one day prior to the due date), Sterling Investment Corporation (SICPL) shall deposit the necessary amounts in the designated account to meet the debenture payments on or before the due date.

SD Corporation is a 50:50 joint venture between the SP Group and the Dilip Thacker Group. The company is currently developing flagship residential projects in Kandivali and Versova in suburban Mumbai, as well as the third tower of the Imperial Towers project in south Mumbai.

Shapoorji Pallonji, the parent company, has guaranteed ₹14,300 crore debt raised at various promoter-level companies as of December 31, 2023, according to Care Ratings. The SP Group plans to prepay the debt through the monetisation of certain assets and proceeds of dividend income.