Reliance Power and its parent entity actively settling dues with lenders
Reliance Power settled the debts owed to three banks — ICICI Bank, Axis Bank, and DBS Bank — last week while its parent Reliance Infrastructure is working towards settling dues of Rs 2,100 crore to JC Flowers Asset Reconstruction Company, said people with knowledge of the matter.
«Reliance Power aims to be a debt-free company by the end of this fiscal year. The only debt on its books will be the working capital loan from IDBI Bank,» said a senior executive from a commercial bank. The three lenders jointly had about Rs 400 crore and have recovered close to 30-35% of their principal loans, another lender said.
Reliance Infrastructure and JC Flowers ARC had entered into a standstill agreement, according to notice issued to the exchanges on January 7. Initially, the standstill was until March 20, 2024, according to a separate stock exchange disclosure. «This was recently extended to March 31, 2024,» said a spokesperson of Reliance Infrastructure.
As per the standstill agreement, JC Flowers ARC will not take legal action against Reliance Infrastructure until March 31, giving the company time to arrange funds.
ICICI, Axis and DBS Bank did not respond to ET's request for comments. Reliance Power did not comment on details of settlement of the loan.
Reliance Power raised Rs 240 crore equity from VFSI Holdings on March 13, a stock exchange disclosure showed. The proceeds were probably used to settle the dues of the banks, one of the bankers cited above said. VFSI Holdings is a subsidiary of Varde Partners, a global
