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Last Updated : Jul 11, 2019 02:17 PM IST | Source: Moneycontrol.com

Reliance Infra jumps 16% after agreement among lenders; gets 180 days to resolve debts

Reliance Infrastructure said it is confident of implementing its Resolution Plan well before the 180-day deadline based on advanced progress of its various asset monentisation initiatives

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Reliance Infrastructure shares rallied nearly 16 percent intraday on July 11 after 16 lenders signed the Inter-Creditor Agreement (ICA).

As per the RBI Circular of June 7, 2019, 100 percent of its lenders have signed the ICA for the resolution of the company's debt, the company said.

Reliance Infrastructure has now achieved standstill for 180 days as per the ICA, it added.

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According to the RBI Circular, the Resolution Plan of Reliance Infrastructure is to be implemented within 180 days.

Reliance Infrastructure said it is confident of implementing its Resolution Plan well before the 180-day deadline based on advanced progress of its various asset monentisation initiatives.

As per the RBI framework, Resolution Plan has to be agreed to by 75 percent of the lenders by the value of debt and 60 percent by the number of lenders.

Reliance Infrastructure has already announced the sale of Delhi-Agra Toll Road for an enterprise value of Rs 3,600 crore. With this single transaction, the debt of Reliance Infrastructure will reduce by over 25 percent to just over Rs 4,000 crore, the company said.

Reliance Infrastructure also plans to monetise its marquee 7 lakh square feet Reliance Center in Santacruz by way of long-term lease. The company aims to be zero debt in 2020.

The stock was quoting at Rs 52, up Rs 6, or 13.04 percent on the BSE at 1357 hours IST.

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First Published on Jul 11, 2019 02:17 pm
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