Reserve Bank of India to resolve debt of Reliance Capital Limited
Reliance Capital Limited said that it welcomes the move of the Reserve Bank of India to resolve its debt in compliance with the IBC Code.
The Indian financial services holding company, which is promoted by Reliance Anil Dhirubhai Ambani Group, said that it will fully co-operate with the RBI-appointed Administrator for an accelerated resolution of its debt in the best interests of all stakeholders.
Reliance Capital said that the complexity of litigation launched by some secured and unsecured lenders had led to the pendency of more than 10 cases in various forums, including the Supreme Court, Delhi High Court, Mumbai High Court, and DRT. As a result, the resolution of its debt had been stalled effectively in spite of its best efforts for the last two years.
The Indian financial services holding company claimed that it owns profitable and valuable operating businesses via its 100% stake in Reliance General Insurance (RGIC) and 51% stake in Reliance Nippon Life Insurance (RNLIC).
Reliance Capital said that it does not have any outstanding loans from banks and nearly 95% of its debt is through debentures.
In a statement, Reliance Capital said: “The Company looks forward to expeditious resolution of its debt and continuation as a well capitalized going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders.”