Reliance Power And Its Arm Get Standstill From Lenders For 180 Days

Reliance Power Ltd. said Friday the company and its arm have inked an inter-creditor agreement with all of their lenders and both firms achieved standstill for 180 days.

After signing the inter-creditor agreement, the firm has got 180 days for implementation of the debt resolution plan under the existing legal framework. According to the RBI circular, companies get 180 days of standstill period for debt resolution after signing the pact.

“Reliance Power Ltd.’s six lenders have signed the inter-creditor agreement on July 6, 2019. As per the RBI circular of June 7, 2019, 100 percent of its lenders have signed the ICA for the resolution of Reliance Power’s debt,” a BSE filing said.

The company further told the BSE, “All six lenders of Reliance Power's subsidiary Vidarbha Industries Power Ltd. have also signed ICA giving VIPL a 180-day timeframe to implement a resolution plan.”

VIPL operates the 600-megawatt (MW) Butibori Power Project near Nagpur in Maharashtra.

On Thursday, Reliance Power had told the BSE about recasting the Rs 2,430-crore loan for its Samalkot project in Andhra Pradesh. “Reliance Power's Samalkot project successfully recasts Rs 2,430-crore ($ 347 million) loan from U.S.-EXIM...amortising repayment schedule converted into bullet repayments...extended final loan maturity to June 2022...ultra-low interest rate of only 2.65 percent per annum,” Reliance Power had said in a BSE filing.

The company had also said it is in advance stages of development of the Bangladesh project and relocating Samalkot modules to Bangladesh. The company is a private sector power generation and coal resources company.