Tuesday, August 9News That Matters

Reliance Capital defaults on interest payments on HDFC and Axis term loans

Anil Ambani-led Reliance Capital defaulted interest payment on its Rs 690 crore of outstanding borrowings from Housing Development Finance Corporation (HDFC) and Axis Bank.

The amount includes accrued interest up to October 31.

The company informed the exchanges that it failed to pay interest of Rs 4.77 crore to HDFC and Rs 0.71 crore to Axis Bank on October 31 as it was unable to proceed with asset monetisation due to various legal barriers, it said in a regulatory filing on November 27.

Reliance Capital’s total indebtedness amounts to Rs 20,077 crore including accrued interest at the end of October 31.

“The company is unable to proceed with asset monetization resulting in delay in debt servicing, due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues,” the company informed the stock exchanges. This were pursuant to order dated November 20, 2019 passed by the Delhi High Court, and orders dated December 3, 2019 and December 5, 2019 passed by the Mumbai Debt Recovery Tribunal and order dated November 4, 2020 passed by the Bombay High Court.

Reliance Capital took terms loans worth Rs 524 crore from HDFC for 6 months to 7 years at 10.6-13% annual interest. It took term loans of Rs 100.63 crore from Axis Bank for 3-7 years at 8.25% a year.

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Banking/Finance-Industry-Economic Times

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