MUMBAI, Nov 30 (IANS): Reliance Capital Limited has welcomed the Reserve Bank of India’s (RBI) move to resolve the Company’s debt in accordance with the IBC Code. The Company will cooperate fully with the administrator appointed by the RBI for the expeditious resolution of its debt in the best interests of all stakeholders, the statement said.
The complexity of litigation initiated by certain secured and unsecured lenders, resulting in the pendency of over 10 cases in various forum, including the Supreme Court, Mumbai High Court, Delhi High Court and DRT, has effectively stalled the resolution of the Company’s debt, despite its best efforts for the past over 2 years, the company said.
The company owns profitable and valuable operating businesses, through its 100 per cent shareholding in RGIC and 51 per cent shareholding in RNLIC (a JV with global leader, Nippon Life Co. of Japan), which represent the majority of the value of the Company being a Core Investment Company (CIC), besides other financial investments. The Company has no outstanding loans from banks and approx 95 per cent of its debt is in the form of debentures.
The Company looks forward to expeditious resolution of its debt and continuation as a well capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders.