Reliance Capital Ltd. on Friday said it has defaulted on interest and principal obligations on bonds due on Nov. 15.
On Sept. 20, CARE Ratings had downgraded the company's entire outstanding debt to default "CARE D" rating.
Reliance Capital said the rating was downgraded even though there were no overdues on principal or interest payment to any lender.
This rating downgrade has initiated acceleration, etc. of various facilities by certain lenders and consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next eight years till March 2028, as per the original terms of lending, Reliance Capital had said earlier in October.
"It is expected that the debt servicing of the company in relation to the accelerated amounts and otherwise will be delayed.”
"Accordingly, as regards the Non-Convertible Debenture, the interest/principal obligations due on Nov. 15, 2019, is also delayed," it said.
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