Debt-ridden Religare Finvest Ltd (RFL) on Friday said it has signed a settlement agreement with all its lenders for a one-time settlement, clearing the deck for the NBFC to exit from the Corrective Action Plan imposed by the RBI.
Religare Enterprises, the parent company of RFL, has entered into an agreement in connection with the OTS with all 16 secured lenders for full and final settlement with respect to all their outstanding dues, a regulatory filing said.
RFL has been under a Corrective Action Plan (CAP) since January 2018 due to its weak financial health.
RFL, an NBFC arm of Religare Enterprises Ltd, owed about Rs 5,300 crore to the consortium of lenders led by the State Bank of India (SBI). Other lenders include the Bank of Baroda, Union Bank of India, Canara Bank, Punjab National Bank, Bank of India, IDBI Bank, Punjab & Sind Bank, and Bank of Maharashtra.
The regulatory filing said RFL would ensure compliance with the terms and conditions of the said OTS (one-time settlement) agreement.
RFL has been taking necessary corrective measures as advised by the Reserve Bank of India and it will seek the removal of the CAP in due course so that it can restart the lending business, it said.
RFL has been in financial distress due to the alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh.
"This is a positive and significant move in the history of our company. Our efforts and representations to our lenders have shown positive results and we appreciate their backing and support at this critical juncture. This move takes us closer to our vision of turning the Religare Group into a 360-degree financial services conglomerate," REL Chairman Rashmi Saluja said.
Led by new management and a professionally run Board since 2018, the Religare Group has been making positive strides to grow each of its individual entities and has worked tirelessly to progress and provide stability backed by strong corporate governance at its core, it said.
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