Reliance Home Finance defaulted on loan repayment of Rs 40 crore

Reliance Home Finance defaulted on loan repayment of Rs 40 crore
11/03/2020 , by , in News/Views

The Anil Ambani-controlled Reliance Capital group firm Reliance Home Finance has defaulted on loan repayment of Rs 40.08 crore in February, it said in a regulatory filing on Tuesday. The company has cash on hand of approximately Rs 700 crore in the form of investment in liquid mutual fund, it said.

“However the delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets, pursuant to order dated November 20, 2019 passed by the Delhi High Court,” it said.

As per an earlier agreement, the lenders of the company have entered into an Inter-Creditor Agreement for arriving at the debt resolution plan in accordance with the circular dated June 7, 2019 issued by the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets.

This has resulted in delay in debt servicing by the company, it added.

Of the loan default dated February 8, 2020, the disclosure of which was made on March 10 to the exchanges, Rs 40 crore is towards principal and Rs 0.08 crore as interest to its lender Punjab and Sind Bank.

Reliance Home Finance said it has total obligation of Rs 200 crore for the loan with seven-year tenure and the rate of interest is of 9.15 per cent per annum.

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