Under an earlier agreement, the company`s lenders entered into an Inter-Creditor agreement to complete the debt repayment plan in accordance with the June 7, 2019 circular issued by the Reserve Bank of India regarding the Prudential Framework for Resolution of Stressed Assets. Reliance Capital Ltd became insolvent with the payment of interest of 4.76 million euros to HDFC and 0.71 balances to axis Bank for long-term loans. She did not pay interest on January 31, 2020. Reliance Home Finance said it has an overall commitment of Rs 200 crore for the seven-year loan and the interest rate is 9.15 percent per annum. In addition, the total amount of loans taken out by banks and financial institutions amounts to 3,921 kronor (with interest). „The resolution process is initiated by RCFL credit lenders who signed the agreement between the creditors on July 6, 2019 and are subject to the RBI circular. On July 6, 2019, lenders accounted for approximately 91% of RCFL`s total outstanding debt. RCFL`s remaining lenders include investment funds, pension funds and others, and the agreement of these lenders may also be required with respect to the implementation of approved resolution plans, depending on the terms of their underlying contracts,” the statement said. Similarly, Reliance Commercial Finance reported a net loss of 852 kronor for the March quarter. „The company`s ability to meet its obligations depends to a large extent on events of great uncertainty, including loan restructuring and the completion of debt settlement under the ICA,” the auditors said. „The company`s ability to meet its obligations depends to a large extent on events of great uncertainty, including loan restructuring and loan realization under the Inter-Creditor Agreement (ICA), which could create doubts about its ability to continue as an ongoing business,” the auditors said.
In July 2019, lenders signed separate inter-creditor agreements (ICAs) for Reliance Home Finance and Reliance Commercial Finance to find a solution in six months, according to the Reserve Bank of India circular of June 7. The ICAs have been extended until September 30, 2020. On the loan default of February 8, 2020, which was disclosed on March 10 on the stock markets, 40%. 0.08% are towards the capital. interest to their lender, Punjab and Sind bank. RCFL has been renamed Reliance Money, after its website. The company is a wholly owned subsidiary of Reliance Capital Ltd and offers a wide range of financial products, including loans to small and medium-sized enterprises, real estate loans, infrastructure financing, agricultural loans and supply chain financing, he said. Reliance Home Finance and Reliance Commercial Finance are subsidiaries of Reliance Capital, promoted by Anil Ambani.
While Reliance Home Finance has a total debt of 13,000 securities, Reliance Commercial Finance has a total loan of 9,812 kronor. BoB is the principal creditor for both companies. Lenders to Reliance Home Finance (RHF) and Reliance Commercial Finance (RCFL) invited expressions of interest (EoIs) from bidders. The lenders, under the direction of the Bank of Baroda (BoB), gave bidders the choice of the acquisition of the entire company or the combination of their portfolio.