INSUBCONTINENT EXCLUSIVE:
3,500 crore of investment after the Reliance Capital unit missed repayments.
IDBI Trusteeship Services filed the application under the
Insolvency and Bankruptcy Code against a financial services company
said.
IDBI Trusteeship wants the tribunal to seize the assets of Reliance Home Finance and Reliance Capital to recover the dues
ET has seen a copy of the application, filed on Thursday.
The application also requested the NCLT that the company not be allowed to sign
any debt resolution plan with other lenders or other resolutions that may go against the interests of the investors in its non-convertible
The company shall take all appropriate steps in the matter to protect the interests of its lenders and other stakeholders, it said in a
default category, by rating firms.
In a note to the bondholders, IDBI Trusteeship said following the default on payment of interest and
redemptions of principal, it filed two petitions against the mortgage lender before the Mumbai bench of the NCLT, for recovery of Rs 2,850
crore and Rs 476 crore in principal, plus interest.
The bondholders had subscribed to the non-convertible debentures between November 2016
and January 2017 in various trenches
Ambani-promoted Reliance Capital informed the stock exchanges that as directed by the lead bank to an inter-creditor agreement that was
being worked on, the amounts due and payable by Reliance Home Finance in respect of unsecured NCDs were delayed.
After the company defaulted
on bond repayments, ET reported on Monday that the bondholders were considering legal action that might include seeking recovery proceedings
through the NCLT.
Nippon India Mutual Fund, SBI Mutual Fund, Indian Iron and Steel PF, an arm of sovereign backed SAIL, Oriental Bank of
Commerce, Emami group entity Frank Ross, the National Bank for Agriculture and Rural Development, and Maharashtra government-owned SICOM
creditors including any third parties before clearing their dues.
Nitesh Jain of Shardul Amarchand Mangaldas filed the application on behalf
