Reliance Infra cuts debt to Rs 4.7 Bn after settlements
ECONOMY & POLICY

Reliance Infra cuts debt to Rs 4.7 Bn after settlements

Anil Ambani controlled engineering, procurement and construction (EPC) company Reliance Infrastructure Ltd on said it had reduced its debt to Rs 4.75 billion from Rs 3.83 billion after settling dues with creditors.
Bad loan aggregator Invent Assets Securitisation and Reconstruction a creditor to the company, novated certain charged securities to recover its dues as a result, Invent ARC's entire fund based outstanding amount has been reduced to zero Reliance Infra said.
"Invent which had taken charge of some debt of the company has sold those securities to another investor which is why its outstanding to R Infra has come down," said a person familiar with the settlement. ET could not ascertain the amount of debt that had changed hands. Reliance Infra has also cleared its funded outstanding dues to Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders, the company said.
Edelweiss Asset Reconstruction Company Ltd was paid Rs 2.35 billion to settle total dues of Rs 3.85 billion with respect to NCDs of R Infra held by them at about a 39% haircut for the creditor. The one time settlement with Edelweiss will be completed by the end of the month, the company said. Similarly LIC was paid Rs 6.00 billion to settle dues of Rs 10 billion on NCDs held by the insurer, a 40% haircut on total dues, person cited above said.
The company did not give any details of settlement with Union Bank, ICICI and other unnamed lenders mentioned in the stock exchange filings. As a result of all these settlements, the company’s external debt liability is down to Rs 4.75 billion. Consequently, the net worth of the company will stand at Rs 90.41 billion, R Infra said.

Anil Ambani controlled engineering, procurement and construction (EPC) company Reliance Infrastructure Ltd on said it had reduced its debt to Rs 4.75 billion from Rs 3.83 billion after settling dues with creditors.Bad loan aggregator Invent Assets Securitisation and Reconstruction a creditor to the company, novated certain charged securities to recover its dues as a result, Invent ARC's entire fund based outstanding amount has been reduced to zero Reliance Infra said.Invent which had taken charge of some debt of the company has sold those securities to another investor which is why its outstanding to R Infra has come down, said a person familiar with the settlement. ET could not ascertain the amount of debt that had changed hands. Reliance Infra has also cleared its funded outstanding dues to Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders, the company said.Edelweiss Asset Reconstruction Company Ltd was paid Rs 2.35 billion to settle total dues of Rs 3.85 billion with respect to NCDs of R Infra held by them at about a 39% haircut for the creditor. The one time settlement with Edelweiss will be completed by the end of the month, the company said. Similarly LIC was paid Rs 6.00 billion to settle dues of Rs 10 billion on NCDs held by the insurer, a 40% haircut on total dues, person cited above said.The company did not give any details of settlement with Union Bank, ICICI and other unnamed lenders mentioned in the stock exchange filings. As a result of all these settlements, the company’s external debt liability is down to Rs 4.75 billion. Consequently, the net worth of the company will stand at Rs 90.41 billion, R Infra said.

Next Story
Infrastructure Transport

Railways approves major upgrade for Telangana traction lines

The Ministry of Railways has approved the upgradation of the electric traction system in two crucial railway sections — Medchal–Mudkhed (225 km) and Mahbubnagar–Dhone (184 km). The projects, costing Rs 1.93 billion and Rs 1.23 billion respectively, will enhance the electric traction capacity from 1X25 KV to 2X25 KV. The work includes modifications to circuit breakers and switching stations, along with the installation of additional conductors. These routes serve as vital links between Northern and Southern India via Hyderabad. Once completed, the upgraded system will reduce voltage dro..

Next Story
Infrastructure Transport

Adani to invest Rs 425 billion more in Maharashtra’s Dighi Port

The Adani Group has committed to invest an additional Rs 425 billion in the Dighi Port project, located along Maharashtra’s coastal Konkan belt, government officials announced on Monday. Adani Ports and Special Economic Zone (APSEZ)-run Dighi Ports signed a memorandum of understanding (MoU) with the Maharashtra government to undertake the expansion of the port and related infrastructure. This new commitment comes as part of a broader investment initiative by the state. Chief Minister Devendra Fadnavis said the agreement is among 15 MoUs worth over Rs 560 billion signed during the opening d..

Next Story
Infrastructure Transport

HUDCO, JNPA sign Rs 50 billion deal for port development

In a strategic move, the Housing and Urban Development Corporation Ltd (HUDCO) has signed a Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA) for an investment of Rs 50 billion to revamp and develop port infrastructure. The non-binding agreement is intended to strengthen cooperation on both existing and upcoming infrastructure projects, with a focus on development, financing, and refinancing of port facilities at the Jawaharlal Nehru Port. The MoU was formalised with the signatures of Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, and Unmesh Shar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?