Reliance Home Finance Ltd (RHFL) said on Saturday it defaulted on a loan of over Rs 40 crore from Punjab & Sind Bank even though the company had sufficient cash and cash equivalents it could not use due to court order.
The subsidiary of Reliance Capital controlled by Anil Ambani defaulted on its loan on February 15, 2021, and the current default amount is Rs 40 crore with an interest of Rs 15 lakh.
The company’s total obligation is Rs 200 crore on a 5-year 9.25% per annum guaranteed term loan from Punjab & Sind Bank, RHFL said in a regulatory filing.
The company has net liquidity (including cash equivalents, investments in liquid mutual funds, term deposits, etc.) of over Rs 1,500 crore, he said.
“However, the delay in the service of the debt is due to the prohibition on the company to cede, alienate, encumber directly or indirectly or otherwise the possession of any asset, in accordance with the order of November 20, 2019 issued by the Delhi High Court, “It said.
RHFL said the company’s lenders are already in an inter-creditor agreement (ICA) to reach the debt resolution plan in accordance with RBI’s prudential framework for the resolution of distressed assets.
This resulted in a delay in servicing the company’s debt, RHFL added.
The company’s total outstanding borrowings from banks and financial institutions are Rs 4,358.48 crore.
The listed entity’s total financial indebtedness including short and long term debt amounts to Rs 13,126.94 crore including accrued interest until February 28, 2021, he stated on the record.
The court order concerns a coercive stay obtained by the Shapoorji Pallonji (SP) group of the Delhi High Court against RHFL in November 2019.
In accordance with the ordinance, RHFL is prohibited from disposing, disposing of, directly or indirectly or otherwise encumbering the possession of any of its assets, thus directly affecting the resolution of the outstanding debt.
Even though RHFL has received attractive offers under the corporate resolution plan which is in the final stages, there could be a barrier to early resolution due to the court order.
According to the sources, the lenders cannot continue the resolution process because of the stay order.
Separately, RHFL said the National Housing Bank (NHB) had imposed a penalty of Rs 30,000 on the company for violating certain provisions.
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