Banks reviewing Reliance Naval’s debt resolution plan: Anil Ambani

Banks reviewing Reliance Naval’s debt resolution plan: Anil Ambani
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Mumbai, Aug 30: Reliance Group chairman Anil Ambani today said that Reliance Naval and Engineering Co. Ltd has presented its lenders with a debt resolution plan and is awaiting their meeting on the matter. “As far as Reliance Naval is concerned, we are engaged with the lenders. We had given resolution offers to the lenders and the vast majority of the lenders are supportive of the resolution and we will have to wait for the outcome of a lenders’ meeting to decide how that will really proceed,” said Ambani.
On 28 August it was reported that Reliance Naval is one of the companies which lenders have decided to refer to the National Company Law Tribunal (NCLT) following the end of 180-day deadline of the Reserve Bank of India (RBI). Other companies in the list included Essar Power, Korba West Power Co. Ltd, Jindal India Thermal Ltd, Sravanthi Energy Pvt. Ltd, BMM Ispat Ltd, ISMT Ltd, BRG Iron and Steel and Splendid Metal Products Ltd.
When asked about expiry of RBI’s deadline and where Reliance Naval’s debt resolution plan stands, Ambani said: “You should ask the lenders. Our proposal is in front of the lenders.”
The central bank, through in its 12 February circular, had asked banks to craft resolution plans for defaulters within 180 days in cases where the exposure is more than Rs 2,000 crore. RBI had also introduced the concept of a one-day default under which banks have to identify incipient stress when repayments are overdue even by a day.
On 25 August, Reliance Naval had informed the stock exchanges that Ambani resigned as director of the company in compliance with provisions of Section 165 of the Companies Act, 2013, prescribing the limit on directorships to only 10 public companies. “As per the Companies Act, we are not allowed to be more than 10 companies, and I have chosen where I want to be,” Ambani said.
Reliance Infrastructure Ltd (RInfra) today said it has completed the Rs 18,800 crore deal for sale of its Mumbai power assets to Adani Transmission Ltd, a move that will help the Anil Ambani-run firm pare debt by two-thirds to Rs 7,500 crore.