R-Infra Creditors ink agreement to implement resolution plan in 6 months

MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a press release submitted to the Indian Bourses, Anil Dhirubhai Ambani Group’s (ADAG) Infra arm Reliance Infrastructure Ltd said of 16 lenders to the company having inked inter-creditor agreement, for the resolution of the company’s debt, vide which the resolution plan of the company shall be implemented in 180 days (~six months).

The press release submitted to the Indian Stock Exchanges on Thursday by the company read that, Reliance Infrastructure Ltd.’s 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.

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

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

Reliance Infrastructure 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.

Reliance Infrastructure has already announced the sale of Delhi-Agra Toll Road for Enterprise Value of Rs 3,600 crore.

With this single transaction, debt of Reliance Infrastructure will reduce by over 25% to just over ₹ 4,000 crore.

Reliance Infrastructure also plans to monetise its marquee 7 Lakh Sq. Ft. Reliance Center in Santacruz by way of long-term lease.

The Company aims to be zero debt in 2020.

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