The delay in debt servicing is due to Delhi high Court order (November 20, 2019) prohibiting the Company to dispose off, alienate, encumber either directly or indirectly or part with the possession of any assets, company said in filing with BSE.
Also the Debts Recovery Tribunal, in proceedings initiated by Vistra ITCL (India) Ltd on December 3, 2019, prohibited the Company from transferring, alienating, encumbering or parting with the possession of assets owned by it.
In view of the above the Company is unable to proceed with its asset monetisation resulting in delay in its debt servicing, Reliance Capital said.
HDFC has extended a loan of Rs 523.9 crore, while Axis Bank's exposure is about Rs 100.6 crore. The total amount of outstanding borrowings from banks and financial institutions was Rs 641.7 crore as on January 31, 2020, according to BSE filing.
The total financial indebtedness including short- and long-term debt was Rs 18,921 crore and includes accrued interest upto January 31, 2020.
Meanwhile, Reliance Home Finance informed exchange that it had defaulted on interest payment on term loan and Cash Credit.
The Company has cash on hand of approximately Rs 700 crore in the form of investment in liquid mutual fund. However, the delay in debt servicing is due to prohibition to dispose off, alienate, encumber either directly or indirectly or part with the possession of any assets. This follows Delhi High Court order passed on November 20, 2019.
Reliance Home Finance said the Lenders to the company have entered into an Inter-Creditor Agreement (ICA) for arriving at the debt resolution plan in accordance with the circular dated June 7, 2019.
The total amount of outstanding borrowing stood at Rs 3,890 crore. Total financial Indebtedness of the listed entity including short-term and long-term debt was Rs 11,955 crore, it added.