Religare Finvest Ltd (RFL), a wholly-owned subsidiary of Religare Enterprises (REL), has repaid all its external debt amounting to Rs 9,000 crore over a period of time.
Following the repayment, the firm has cleared all its debts with external lenders and resolved all legacy issues. This has also resulted in clearing the default status of RFL, it said in a statement, adding it is now ready for fresh lending business.
RFL is ready to resume operations. This, however, is subject to removal of Corrective Action Plan (CAP) placed by RBI.
The repayment of the total debt was from collections and support of REL. Through the one-time-settlement (OTS), RFL had completed the debt repayment of Rs 2,178 crore to 16 external lenders on March 8, 2023, ahead of schedule.
This debt resolution marks the culmination of efforts of the management to address legacy issues stemming from the “misconduct and siphoning off funds” from REL by erstwhile promoters, it said.
RFL, in accordance with the terms of the sanction letters received under the OTS, had signed the settlement agreement with 16 lenders in December 2022 for full and final settlement.
Following the final payment in March 2023, the company received no dues certificates from the lenders. The firm is in the process of removing CAP, which was imposed by the RBI on RFL in January 2018.