Reliance power settles outstanding loans, shares jump
Reliance Power
Reliance power limited has paid off the entire obligations of the company as a guarantor on behalf of Vidarbha Industries Power Limited (VIPL). The total outstanding debt amounts to Rs 3872.04 crore. Shares of the company rose 5 per cent following the announcement.
The company said, 'Reliance Power has settled all disputes with CFM Asset Reconstruction Private Limited (CFM). 100% shares of VIPL have been pledged in favour of CFM against the release and discharge of Corporate Guarantee given by Reliance Power.'
"As a result, Invent ARC's entire fund based outstanding amount has been reduced to Zero. Additionally, Reliance Infra has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders. The Company’s external debt liability is down to INR 475 crore. Consequently, the net worth of the Company will stand at Rs 9,041 crore," it added.
