Reliance Infra-structure lenders sign pact
New Delhi: As many as 16 lenders on Thursday joined hands for early recovery of their loans given to Anil Ambani-led Reliance Group firm Reliance Infra-structure and signed an inter-creditor agreement (ICA) for the resolution of debt in the company.
“Reliance Infrastructure Ltd’s 16 lenders have signed the ICA. As per the RBI Circular of June 7, 2019, 100 per cent of its lenders have signed the ICA for the resolution of Reliance Infrastructure’s debt, ” the company said in a statement.
Reliance Infrastructure (RInfra) is having a debt of about Rs 5,900 crore and the company has already churned out plans be debt-free in 2020, for which it has to implement its resolution plan before 180 days.
As per RBI guidelines, a resolution plan has to be implemented within 180 days and agreed to by 75 per cent lenders by value of debt and 60 per cent by number of lenders.
“RInfra is confident of implementing its resolution plan well before the 180-days deadline based on advanced progress of its various asset monetisation initiatives,” the company said.
With the report of debt resolution plan in progress, shares of the company traded higher by 10.98 per cent, closing at Rs 51.05 on the BSE.
To reduce its pile of debts, the company has already announced the sale of the Delhi-Agra Toll Road for an enterprise value of Rs 3,600 crore. “With this single transaction, debt of Reliance Infrastructure will reduce by over 25 per cent to just over Rs 4,000 crore,” the company said.
Also, the huge debt burden has forced the group to offer its headquarters in Mumbai’s Santacruz on a long-term lease and move back operations to a south Mumbai building.