Anil Ambani group firms, Reliance Infrastructure and its subsidiary, Reliance Power, settled a major part of their debt with lenders, with Reliance Infrastructure reducing its standalone external debt by almost 87.6 per cent to Rs 475 crore—down from Rs 3,831 crore as of June, as per stock exchange notices.
The Anil Ambani family’s infrastructure firm said that “Invent Assets Securitisation and Reconstruction Private has novated certain charged securities to recover its dues.” As a result, the company’s outstanding amount owed to Invent ARC has been reduced to zero.
Moreover, according to the company’s statement, it has also fully repaid its outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company, ICICI Bank, Union Bank, and other lenders. With a reduction in debt, the company’s net worth will stand at Rs 9,041 crore, it said.
In a separate notice, Reliance Power said it settled its obligation towards CFM Asset Reconstruction Private (CFM) worth Rs 3,872.04 crore as a guarantor on behalf of Vidarbha Industries Power (VIPL), a Maharashtra-based company. With all disputes resolved, the company is released and discharged from corporate guarantees, undertakings, and all obligations and claims in relation to the debt of VIPL, it said.
However, the listed entity had to pledge 100 per cent of shares in VIPL in favour of CFM against the release and discharge of the given corporate guarantee. A pledge of the balance of 92.60 per cent shareholding of VIPL in favour of Axis Trustee Services Ltd has been created.
For settlement purposes, the company entered into an agreement along with its subsidiaries, Rosa Power Supply Company and VIPL, with CFM and formalised a pact. With the execution of a release deed, Reliance Power and its above-mentioned subsidiaries will withdraw all proceedings initiated by them against CFM. In return, CFM would also withdraw all proceedings initiated by it against Reliance Power and Rosa, which also included an insolvency application.
Additionally, as per the company’s statement, it now has zero debt from banks and financial institutions. On Wednesday, Reliance Power’s shares closed at Rs 32.97, while Reliance Infrastructure’s closed at Rs 282.73.
In a separate announcement, Adani Energy Solutions (formerly Adani Transmission) said the two parties—Adani Energy and R-Infra—have mutually agreed to settle all disputes and withdraw all claims filed in connection with the share purchase agreement signed in 2017. The settlement relates to a September 2022 Rs 13,400 crore arbitration claim that R-Infra filed in connection with the sale of its Mumbai power distribution business to Adani Transmission in 2017.
Reliance Infrastructure’s board is meeting on Thursday to consider and approve long-term fundraising via preferential allotment of shares.
(With inputs from Amritha Pillai)
First Published: Sep 18 2024 | 6:36 PM IST
