Adani vs Hindenburg: As banks stall talks to refinance debt, group to prepay $500 mn loan

As Adani struggles to rebuild confidence among investors and lenders alike, several Indian banks have tried to allay concerns by showing that their exposure to Adani is limited. As Adani-linked Elara Capital faces a probe in the UK and the group's French partner has halted a project, global banks are also cautious. To restore its credibility, the Adani Group has already repaid $1.1 billion borrowed against shares ahead of time, and is now set to pay another $500 million.

The Hindenburg report has reportedly stalled negotiations between Adani and Barclays, Standard Chartered and Deutsche Bank. The three lenders have financed Adani's acquisition of Holcim's cement arm with $4.5 billion, and were about to refinance the debt with another loan before Hindenburg struck. Adani's securities are already being rejected by Citigroup and Credit Suisse as collateral, and the conglomerate's stocks have yet again crashed after bouncing back.

On the other hand, a Bloomberg report mentions that the Adani Group has denied the claims about negotiations being halted. The firm says that while it was talking to lenders, it still decided to prepay the loans. Damning allegations about fraud and concerns about high debt in the Hindenburg report, have wiped off more than $100 billion from Adani's market cap.