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Reliance Infrastructure’s 16 lenders sign Inter-Creditor Agreement

11 Jul 2019 Evaluate

Reliance Infrastructure's (RInfra) 16 lenders have signed the Inter-Creditor Agreement (ICA). As per the RBI Circular of June 7, 2019, 100% of its lenders have signed the ICA for the resolution of Reliance Infrastructure’s debt.

The company has now achieved standstill for 180 days as per the ICA. According to the RBI Circular, the Resolution Plan of company is to be implemented within 180 days. The company is confident of implementing its Resolution Plan well before the 180-days 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% of the Lenders by value of debt and 60% by number of Lenders. The company has already announced the sale of Delhi-Agra Toll Road for Enterprise Value of Rs 3,600 crore. With this single transaction, debt of company will reduce by over 25% to just over Rs 4,000 crore.

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

RInfra is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.

Reliance Infra Share Price

87.48 0.00 (0.00%)
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