Reliance Home Finance on Saturday said it has defaulted on loan of over Rs 40 crore from Punjab & Sind Bank even as the company has enough cash and cash equivalent which it cannot use due to a court order.
The current amount of default is Rs 40 crore alongside an interest of Rs 15 lakh.
Why defaulted?
“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 Delhi High Court.” —Regulatory Filing
The lenders of the company are already into an Inter-Creditor Agreement (ICA) for arriving at the debt resolution plan in accordance with RBI’s Prudential Framework for Resolution of Stressed Assets.
Loan Details
The company’s total obligation is of Rs 200 crore on a 5-year tenure secured term loan at 9.25 per cent per annum from Punjab & Sind Bank.
Total Borrowing
The company’s total outstanding borrowings from banks and financial institutions is Rs 4,358.48 crore.
And total financial indebtedness of the listed entity, including short-term and long-term debt, is Rs 13,126.94 crore, including interest accrued up to February 28, 2021.
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