Business

Reliance Home Finance defaults on Rs 40 crore loan repayment to Punjab & Sind Bank

Read more at economictimes.indiatimes.com

Ltd (RHFL) on Saturday said it has defaulted on loan of over Rs 40 crore from Punjab & Sind Bank even as the company has enough cash and cash equivalent which it cannot use due to a court order. The Anil Ambani-controlled Reliance Capital’s subsidiary defaulted on loan on February 15, 2021, and the current amount of default is Rs 40 crore alongside an interest of Rs 15 lakh.

The company’s total obligation is of Rs 200 crore on a 5-year tenure secured term loan at 9.25 per cent per annum from Punjab & Sind Bank, RHFL said in a regulatory filing.

The company has net cash (including cash equivalent, liquid mutual fund investments, fixed deposits etc) of more than Rs 1,500 crore, it said.

“However the delay in debt servicing is due to prohibition on the company to dispose of, 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.

RHFL said the lenders of the company are already into an Inter-Creditor Agreement (ICA) for arriving at the debt resolution plan in accordance with RBI’s Prudential Framework for Resolution of Stressed Assets.

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

The company’s total outstanding borrowings from banks and financial institutions is Rs 4,358.48 crore.

The total financial indebtedness of the listed entity, including short-term and long-term debt, is Rs 13,126.94 crore, including interest accrued up to February 28, 2021, it said in the filing.

The court order relates to a coercive stay obtained by the Shapoorji Pallonji (SP) Group from the Delhi High Court against RHFL in November 2019.

As per the order, RHFL is prohibited from disposing, alienating, encumbering either directly or indirectly or otherwise part with the possession of any its assets, thus directly impacting the ongoing debt resolution.

Even as RHFL has got attractive bids under the corporate resolution plan that is in final stages, there could be barrier on a speedy resolution due to the court order.

As per sources, lenders cannot proceed with the resolution process due to the stay order.

Separately, RHFL said the National Housing Bank (NHB) has imposed a penalty of Rs 30,000 on the company for contravention of certain provisions.

Read more at economictimes.indiatimes.com

Show More

Related Articles

Back to top button