Reliance Capital Defaults On Bond Payments
Reliance Capital Ltd. on Tuesday said it has defaulted on payments towards its obligations on bonds and interest generated towards the same.
Making disclosure to stock exchanges regarding payment of interest and principal on non-convertible debentures, it said the rating downgrade by CARE in September has initiated acceleration of various facilities by certain lenders.
It also triggered consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next eight years till March 2028, as per the original terms of lending.
"It is expected that the debt servicing of the company in relation to the accelerated amounts and otherwise will be delayed,” it said in the filing.
"Accordingly, as regards the Non-Convertible Debentures ...the interest I principal obligations due on Nov. 25, 2019 and Nov. 26, 2019 are also delayed," it added.
Reliance Capital in on Sept. 21 had said that the rating action by CARE was a completely biased, unwarranted and unjustified action on Sept. 20, 2019.
CARE Ratings had downgraded the company's entire outstanding debt to default "CARE D" rating, even though there were no overdues on principal or interest payment to any lender, it said in September.
The company had informed about such defaults earlier in October and mid November also.