The company already announced sale of the Delhi-Agra toll road for an enterprise value of Rs 3,600 crore, which it indicates will help reduce debt by over 25% to Rs 4,000 crore
Reliance Infrastructure on Thursday informed the stock exchanges that all the 16 lenders had signed the inter-creditor agreement (ICA) for resolution of the account. The stock ended up 11% to Rs 51.05.
“Reliance Infrastructure is confident of implementing its resolution plan well before the 180-day deadline based on advanced progress of its various asset monentisation initiatives,” the notice read.
The Reserve Bank of India circular on ‘Prudential Framework for Resolution of Stressed Assets’ directs bankers to initiate the process of implementing a resolution plan (RP) when the borrower is reported to be in default by any of its lenders.
It mandates all lenders with exposure to a particular entity to enter into an ICA during the 30-day ‘review period’ to provide ground rules for finalisation and implementation of the RP. Thereafter, the parties have 180 days from the end of the review period to implement the plan.
The company had already announced the sale of Delhi-Agra Toll Road for an enterprise value of Rs 3,600 crore, which it indicates will help reduce debt by over 25% to Rs 4,000 crore.
The notice mentioned the company’s plans to monetise on a 7 lakh sq ft property in Santacruz, Mumbai, through a long-term lease. The company aims to be debt free in 2020, the notice stated.
Late last month, the company had informed the exchanges of Brickwork Ratings’ downward rating revision of the company’s bank loan facilities of Rs 1,151 crore due to deterioration in credit risk profile and weakening of the company’s financial/debt servicing profile because of substantial losses reported during FY19. The release had also stated the rating change was based on best available information, since the issuer did not cooperate.
Consolidated gross debt at the end of FY18 stood at around Rs 25,441 crore, according to the annual report for 2017-2018.
According to the annual report, the company’s non-current and current liabilities under term loans facilities from banks stood at Rs 2,866.10 crore and Rs 2,623.24 crore, respectively, as on March 31, 2018.
Non-current and current term loans from financial institutions stood at Rs 337.86 crore and Rs 197.82 crore, respectively, while non-convertible debentures stood at Rs 1,358.56 crore and Rs 1,391.30 crore.