Reliance Capital slips 4% after non-payment of NCDs due on July 22

Reliance Capital Restricted knowledgeable the exchanges about non-payment of curiosity obligations and principal legal responsibility due on July 22, 2021 in respect of Non-Convertible Debentures (NCDs).

The Firm said that it’s unable to proceed with the monetization of the belongings resulting from restrictions on the Firm, besides within the odd course of enterprise, of any belongings immediately or not directly or in any other case accompanied by possession, reminiscent of for cost of . Wage and statutory dues, vide orders dated 20 November, 2019 and 15 March, 2021 handed by Delhi Excessive Court docket, and orders dated 3 December, 2019 and 5 December, 2019 handed by Debt Restoration Tribunal, Mumbai and orders dated by Bombay Excessive Court docket Handed on November 28, 2019, November 4, 2020 and March 5, 2021, leading to non-payment of curiosity obligations and principal legal responsibility as on July 22, 2021, in respect of NCDs.

“As already knowledgeable in our communication dated September 21, 2019, in a very biased, unfair and unwarranted ranking motion on September 20, 2019, CARE Rankings (CARE) defaulted the whole excellent debt of the Firm to “CARE D” ranking regardless that there was no overdue on principal or curiosity cost to any lender.

Along with the above, as knowledgeable by our letter dated October 11, 2019, that this ranking downgrade has initiated acceleration of varied services and consequential calls for for instant cost of dues in a phased method over the subsequent 8 years. is launched. By March 2028, as per the unique phrases of the mortgage. It’s anticipated that the mortgage compensation of the corporate in respect of accelerated quantity and in any other case might be delayed,” the corporate mentioned.

At round 10.13 am, Reliance Capital Ltd was buying and selling at Rs 18 per piece, down Rs 0.75 or 4% from its earlier shut of Rs 18.75 per piece on the BSE.

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