16 lenders sign Reliance Infrastructure Intercreditor Agreement

16 lenders sign Reliance Infrastructure Intercreditor Agreement

Agency News

Mumbai, Jul 11 : Reliance Infrastructure Ltd.'s 16 lenders have signed the Intercreditor Agreement (ICA).

As per the RBI Circular of June 7, 2019, 100 pc of its lenders have signed the ICA for the resolution of Reliance Infrastructure's debt. Reliance Infrastructure has now achieved standstill for 180 days as per the ICA. According to the RBI Circular, the Resolution Plan of Reliance Infrastructure is to be implemented within 180 days.

Reliance Infrastructure is confident of implementing its Resolution Plan well before the 180-days deadline based on advanced progress of its various asset monetisation initiatives. As per the RBI framework, Resolution Plan has to be agreed to by 75 pc of the Lenders by value of debt and 60 pc by number of lenders.

Reliance Infrastructure has already announced the sale of Delhi-Agra Toll Road for Enterprise Value of Rs 3,600 crore. With this single transaction, debt of Reliance Infrastructure will reduce by over 25 pc to just over Rs. 4,000 crore.

Reliance Infrastructure also plans to monetise its marquee 7 lakh Sq. Ft. Reliance Center in Santacruz by way of long-term lease.

The company aims to be zero debt in 2020. (UNI)