Anil Ambani’s Reliance Infrastructure Reduces Debt through Settling Dues
Reliance Infrastructure Ltd, an engineering, procurement, and construction (EPC) company controlled by Anil Ambani, announced a significant reduction in its debt. The company has managed to decrease its debt from Rs 3.83 billion to Rs 4.75 billion through settlements with its creditors.
Debt Settlements with Creditors
Reliance Infrastructure settled its dues with creditors, including Invent Assets Securitisation and Reconstruction. As a result, Invent ARC saw its entire fund-based outstanding amount reduced to zero. While the exact amount of debt transferred between Invent and Reliance Infrastructure remains unknown, a person familiar with the settlement clarified that Invent sold the securities it held to another investor. This transaction ultimately led to a decrease in Reliance Infra’s outstanding debt owed to Invent.
Additionally, Reliance Infrastructure cleared its funded outstanding dues with key lenders such as Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other unnamed lenders. Edelweiss Asset Reconstruction Company Ltd received Rs 2.35 billion, settling its total dues of Rs 3.85 billion with a 39% haircut for the creditor. The settlement with Edelweiss is expected to be completed by the end of the month.
Similarly, LIC received Rs 6.00 billion, settling its Rs 10 billion dues on the non-convertible debentures (NCDs) held by the insurer, with a haircut of 40%.
Remaining Settlement Details
While Reliance Infrastructure disclosed the settlements with Edelweiss and LIC, it did not provide specific information regarding the settlement terms with Union Bank, ICICI Bank, and other unnamed lenders mentioned in the stock exchange filings.
Overall Debt Reduction
With the settlements, Reliance Infra’s external debt liability has ultimately reduced to Rs 4.75 billion. The company’s net worth will consequently stand at Rs 90.41 billion.
This significant reduction in debt reflects Reliance Infrastructure’s determination to address its financial liabilities. By settling dues with creditors, the company has made a commendable effort to enhance its financial position, strive for a strong balance sheet, and strengthen its position in the market.
