The management of GVK Power and Infrastructure Limited (GVKPIL) has renewed talks with potential investors to divest stakes, either partially or fully, in various subsidiaries to which the company had extended heavy guarantees. GVK hopes to further bring down liabilities through stake sales in the coming months. The firm had provided guarantees and commitments and had undertaken to provide financial assistance on behalf of various group entities that were facing uncertainties in their projects. A major concern highlighted by auditors was the delay in the development of coal mines in Australia by GVK Coal Developers (Singapore), in which GVKPIL holds a 10 per cent stake and to which the company had provided guarantees and commitments for borrowings.
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