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Reliance Capital Ltd (RCap) has disclosed that it defaulted on interest payments on January 31 on term loans extended by HDFC and Axis Bank.
According to the company’s disclosure to the exchanges, it has defaulted on interest payment of ₹4.76 crore to HDFC and ₹0.71 crore to Axis Bank. There was no default on the principal.
The principal amount owed by RCap to HDFC is ₹523.98 crore (tenure ranging from six months to seven years; interest rate ranging from 10.60 per cent to 13 per cent). The principal owed to Axis Bank is ₹100.63 crore (tenure ranging from three to seven years; interest rate 8.25 per cent), according to the disclosure.
The exposure of both lenders is secured.
Outstanding borrowings
The total amount of outstanding borrowings from banks/financial institutions is ₹641.74 crore, including accrued interest up to January 31, 2020. The stock exchange notice said the total financial indebtedness of the listed entity, including short-term and long-term debt, is ₹18,921.81 crore, including accrued interest up to January 31, 2020.
RCap emphasised that “the delay in debt servicing is due to prohibition on the company to dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets, pursuant to order dated November 20, 2019, passed by the Hon’ble Delhi High Court in the matter of OMP(I) COMM. 419/2019 and OMP(I) COMM. 420/2019.”
“Further, pursuant to the proceedings initiated by Vistra ITCL (India) Limited, the Debts Recovery Tribunal, vide its order dated December 3, 2019, has also prohibited the company from transferring, alienating, encumbering or otherwise parting with the possession of assets owned by the company,” it added.
In view of the above, RCap said it is unable to proceed with its asset monetisation, resulting in a delay in its debt servicing.
The principal amount owed by RCap to HDFC is ₹523.98 crore and to Axis Bank is ₹100.63 crore
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