Press Report : Tata gets more time to pay for JLR loan

Carole Nash Classic Insurance Specialists

Automotive News Europe/Reuters, 28th May, 2009

India’s Tata Motors Ltd. said on Wednesday it has completed refinancing of its $3 billion bridge loan taken to purchase luxury car brands Jaguar and Land Rover from Ford Motor Co. in 2008.

Tata, which had already repaid $1.16 billion last year and raised $840 million through nonconvertible debentures last week, said it has extended the final maturity of the remaining $1 billion by 18 months up to the end of 2010.

“This agreement, along with the earlier repayments and the bond issue last week, completes the refinancing of the bridge finance,” Tata said in a statement.

India’s top vehicle maker took the $3 billion loan to buy the Jaguar and Land Rover brands from Ford in June 2008 before the credit crunch hit last year.

“This transaction was concluded amidst challenging market conditions in the global credit markets and in the automotive sector,” Tata Chief Financial Officer C. Ramakrishnan said.

The company said 21 lenders participated in this agreement.

[Source: Automotive News Europe]

Clive Goldthorp

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

1 Comment

  1. I think Jaguar Land Rover should reincarnate Rover. They own the brand and it would help a lot of people in Britain with much needed jobs. The only problem is not the bringing back of the brand but where to build the cars.

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