Payment of principal obligations for NCD had been delayed: Reliance Capital

Reliance Capital on Thursday said payment of interest/principal obligations for two non-convertible debentures (NCD) has been delayed.

The payments were due on Wednesday and Thursday, the company said in regulatory filing.

Referring to an earlier communication to stock exchanges, it said "in a completely biased, unwarranted and unjustified rating action" on September 20, 2019, CARE Ratings (CARE) had downgraded the company's entire outstanding debt to default "CARE D" rating, even though there were no overdues on principal or interest payment to any lender.

This rating downgrade has initiated acceleration of various facilities by certain lenders and consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next 8 years till March 2028, as per the original terms of lending, Reliance Capital said.

It is expected that debt servicing of the company in relation to the accelerated amounts and otherwise will be delayed, the filing added.

"Accordingly, as regards the Non-Convertible Debentures (ISIN-INE013A07G11) and (ISIN- INE013A077G2), the interest/principal obligations due on October 16, 2019 and October 17, 2019 respectively, are also delayed," it said.

Shares of Reliance Capital on Thursday closed at Rs 12.85 apiece on the BSE, down 3.02 per cent.