Lenders extend inter-creditor agreement for Reliance Commercial Finance till June 30

Final yr, the corporate had obtained expression of curiosity from few gamers.

Lenders to Reliance Industrial Finance (RCFL) have prolonged the inter-creditor settlement (ICA) until June 30, 2021. The knowledge was disclosed by RCFL’s mother or father firm, Reliance Capital, to the inventory exchanges whereas declaring its quarterly earnings on Might 8. The extension of ICA holds significance because it alerts that banks are nonetheless hopeful a few potential decision for RCFL. Lenders have a complete publicity of Rs 7,626 crore to RCFL, with Bank of Baroda being the lead creditor.

“Within the lenders assembly, all lenders had agreed to additional prolong the ICA interval (for RCFL) until June 30, 2021,” Reliance Capital stated in its quarterly earnings launch. RCFL is assured of implementing its decision plan throughout the stated prolonged interval, it added.

Based on June 7 round of the Reserve Financial institution of India, lenders want to increase the time interval of the pact if an account has not been resolved inside 180 days of signing of the ICA. The lenders had signed the ICA to resolve Reliance Industrial Finance in July 2019. Final yr, the corporate had obtained expression of curiosity from few gamers. Nonetheless, no ultimate decision has to date been reached.