Reliance Power Defaults On Interest Payment To Banks, Again
Reliance Power Ltd. has defaulted on payment of interest to IDBI Bank Ltd. and DBS Bank Ltd.
The Reliance Group-controlled company owes IDBI Bank Ltd. Rs 42 crore in principal and Rs 44 lakh worth of interest, according to its exchange filing. It owes DBS Bank India Rs 113 crore and interest worth Rs 1.17 crore.
The Reliance Group, controlled by Anil Ambani, has been facing financial distress. The Reserve Bank of India last week superseded the board of the group's financial services arm Reliance Capital Ltd., and refer it for insolvency proceedings.
Reliance Power's total outstanding short- and long-term debt stands at Rs 1,440 crore, according to the filing. That's inclusive of accrued interest on loans.
Of this, total outstanding borrowings from banks and financial institutions stand at Rs 1,194 crore. That includes loans from Yes Bank Ltd., IDBI Bank Ltd. and DBS Bank Ltd.
Reliance Power owes Yes Bank Rs 1,163 crore, inclusive of interest. But the Anil Ambani-led company defaulted on Aug. 31 and these are currently on a standstill till Dec. 26.
The company said it's closely working with its lenders towards achieving a debt resolution plan.
Reliance Power has been defaulting in interest and loan repayments against other banks as well.
The company, as on the quarter ended September, defaulted on interest payments to Axis Bank on a Rs 4.68-crore loan, according to default disclosure on interest and loan repayment to the stock exchanges. In January, the company defaulted on payments to Axis Bank, Yes Bank and Laxmi Vikas Bank. The loans of Yes Bank are on standstill till Dec 26.
ICRA Ratings, which rated Reliance Power, has placed the rating under "Issuer Not Cooperating" on Nov. 30. The rating agencies had rated debt worth Rs 2,289 crore.
"The financial profile of R-Power continues to be weak as is evident from its poor liquidity position and weak debt servicing indicators," the rating agency said in a note. "It continues to delay on its debt servicing and is currently in discussions with the lenders for debt resolution/settlement."
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