Religare Enterprises Ltd (REL) on Wednesday said lenders to Religare Finvest Limited (RFL) have agreed to consider a One-Time Settlement (OTS) offer proposed by its debt-ridden subsidiary.
Religare has resolved many legacy issues left over by its erstwhile promoters, including settlement with SEBI and becoming debt free, the non-banking financial company (NBFC) said in a statement.
RFL has received a communication dated May 31, 2022 from its lead lender informing that in a meeting held on May 20, 2022, lenders have in principle agreed to consider the OTS proposal of RFL and to put up the same to their respective authorities, REL said.
RFL, which has been a victim of siphoning off of funds by its erstwhile promoters, has initiated legal actions for recovery and begun its path towards revival, it added.
The company has been in financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. Post RFL's OTS completion, it will have healthy prudential ratios, well above those prescribed by RBI, it added.
REL Chairman Rashmi Saluja said with the completion of OTS, all the legacy issues will be put behind and the Religare group will stride forward to focus on future growth and becoming a 360-degree financial services provider.
RFL has been barred from undertaking fresh business as it is under the corrective action plan (CAP) of the Reserve Bank of India (RBI) since January 2018 due to its weak financial health.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
