Reliance Infrastructure Finally Enters Formal Debt Restructuring
Lenders ink inter-creditor pact with Reliance Infrastructure, giving it a 180-day standstill on debt.
Reliance Infrastructure Ltd.’s lenders agreed to a standstill on debt, giving the Anil Ambani group company time to raise funds to repay banks.
The company’s 16 lenders signed an inter-creditor agreement for the resolution of debt, it said in an exchange filing. That gives it 180 days under the Reserve Bank of India’s norms. The company expects to implement the resolution plan, which includes asset sales, within that period.
Shares of Reliance Infrastructure jumped as much as 16.2 percent, the most in more than a month, after the filing.
The company said it has already announced the sale of Delhi-Agra Toll Road for an enterprise value of Rs 3,600 crore. Reliance Infrastructure also plans to monetise its 7 lakh square-feet Reliance Center in Santacruz through a long-term lease. The company targets to be zero-debt by 2020.
This is a developing story.