Reliance Capital has as soon as once more failed to make interest payment for non-convertible debentures (NCDs) due on March 28 and March 29, 2021. With this default, the non-bank lender has failed to make payment to bondholders at least 50 occasions in the existing economic year (FY21). Although the quantum of default could not be ascertained, the organization had disclosed in the course of its December quarter (Q3FY21) earnings that it had listed NCDs worth Rs 14,827 crore.
Reliance Capital had earlier invited expressions of interest (EoIs) for its crucial assets. However, no final deal has been reached so far with the resolution applicants. The organization has cited legal hurdles for not becoming capable to proceed with its asset monetisation, which in turn resulted in a delay in the debt servicing.
“The company is unable to proceed with asset monetisation due to prohibition on the company to dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues,” Reliance Capital mentioned on Tuesday.
The troubled organization has also missed 12 instalments of HDFC and Axis Bank from January 2020 to February 2021. Reliance Capital has been missing month-to-month interest payment of Rs 4.77 crore to HDFC and Rs 71 lakh to Axis Bank. The lender had taken a loan of Es 524 crore from HDFC and Rs 101 crore from Axis Bank.
While HDFC charged interest prices amongst 10.6% and 13%, Axis Bank had extended the loan to Reliance Capital at 8.25% per annum. Reliance Capital’s total outstanding from banks and economic institutions stood at Rs 711 crore. However, the total economic indebtedness of Reliance Capital remained at Rs 20,643 crore as on February 28, 2021.
The net loss of Reliance Capital had widened to Rs 4,018 crore in the December quarter (Q3FY21), against a net loss of Rs 135 crore in the very same period a year ago. The expenditures of the organization just about doubled to Rs 8,662 crore compared to Rs 4,731 crore final year. The interest revenue of the organization halved to Rs 684 crore, compared to Rs 1,400 crore in December 2019.