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RInfra pares debt by 87% to Rs 475 cr; clears dues with banks and ARCs

RInfra said, "Invent Assets Securitisation and Reconst­ruction Private has novated certain charged securities to recover its dues"

Anil Ambani

Prachi Pisal Mumbai

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Anil Ambani group firm Reliance Infrastructure (RInfra) and its subsidiary Reliance Power (RPower) have cleared a major part of their debt, with RInfra reducing its standalone external borrowing by almost 87.6 per cent to Rs 475 crore, down from Rs 3,831 crore as on June, according to stock exchange notices.

RInfra said, “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 asset reconstruction company (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 (LIC) of India, Edelweiss ARC, ICICI Bank, Union Bank, and other lenders. With a reduction in debt, the company’s net worth will stand at ₹9,041 crore, it said.
 

In a separate notice, RPower said it settled its obligation towards CFM Asset Reconstruction Private (CFM) worth ₹3,872.04 crore as a guarantor on behalf of Vidarbha Industries Power (VIPL), a Maharashtra-based company. With all the disputes resolved, the company is released and discharged of corporate guarantees, undertakings, and all obligations and claims in relation to the debt of VIPL, it said.

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However, the listed entity had to pledge 100 per cent shares of VIPL in favour of CFM against the release and discharge of the given corporate guarantee.

For settlement purposes, the company along with its subsidiaries Rosa Power Supply Company and VIPL got into an agreement with CFM and formalised a pact. With the execution of a release deed, RPower 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 RPower and Rosa, which also included an insolvency application.

Besides, as per the company’s statement, it has now zero debt from banks and financial institutions. On Wednesday, RPower’s shares closed at ₹32.97, while RInfra's ended the day at ₹282.73.

In a separate announcement, Adani Energy Solutions (formerly Adani Transmission) said the two parties, the other being RInfra, have mutually agreed to settle all disputes and withdraw all claims filed in connection with the share purchase agreement signed in 2017. The settlement related to a September 2022 dated Rs 13,400 crore arbitration claim that RInfra filed in connection with the sale of its Mumbai power distribution business to Adani Transmission in 2017.

RInfra board is meeting on Thursday to consider and approve long-term fundraising via preferential allotment of shares.

(With inputs from Amritha Pillay)

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First Published: Sep 18 2024 | 6:36 PM IST

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