Anil Ambani’s Companies Swiftly Repaying Loans : In a significant turn of events, Anil Ambani, the embattled businessman, is witnessing a reversal of fortunes as his companies embark on a rapid loan repayment spree. According to reliable sources, Reliance Power, a subsidiary of Anil Ambani’s conglomerate, recently settled outstanding debts with three major banks: ICICI Bank, Axis Bank, and DBS Bank.
Reliance Infrastructure: Clearing Debt Obligations
Simultaneously, Reliance Infrastructure, the parent company, is diligently working towards extinguishing its liabilities, notably the substantial dues amounting to Rs 2,100 crore owed to JC Flowers Asset Reconstruction Company.
Debt-Free Ambitions: Aiming for Financial Liberation
A senior official from a leading commercial bank revealed that Reliance Power is on a mission to achieve a debt-free status by the culmination of this fiscal year. To facilitate this objective, the company is poised to secure a working capital loan from IDBI Bank.
Recovery Progress: Alleviating Financial Strain
Of the approximately Rs 400 crore owed by Reliance Power to ICICI Bank, Axis Bank, and DBS Bank collectively, a commendable 30-35% has already been recuperated from the original loan amounts.
Standstill Agreement: Providing Breathing Room
A notice dispatched to the exchanges on January 7 unveiled that Reliance Infrastructure and JC Flowers ARC had entered into a standstill agreement, initially slated until March 20, 2024. Recent developments indicate an extension of this agreement until March 31, 2024, as confirmed by a spokesperson from Reliance Infrastructure.
Legal Reprieve: Temporarily Shielded from Litigation
Pursuant to the standstill agreement, JC Flowers ARC has agreed to refrain from pursuing any legal actions against Reliance Infrastructure until the extended deadline of March 31, affording the company crucial time to orchestrate alternative funding arrangements. However, Axis Bank, ICICI Bank, and DBS Bank declined to offer comments on this matter, and Reliance Power refrained from divulging specifics regarding the loan settlement, as reported by Economic Times.
Equity Infusion: Potential Source of Debt Settlement
Recent stock exchange data revealed that Reliance Power garnered equity capital amounting to Rs 240 crore from VFSI Holdings on March 13. Speculation suggests that this infusion may have been instrumental in facilitating the repayment of bank dues.
Amidst these developments, Anil Ambani’s enterprises are navigating a tumultuous financial landscape with resilience and determination, marking a promising chapter in their ongoing quest for financial stability and solvency.
