Anil Ambani’s Reliance Home Finance in deep crisis, loan default of Rs 100 crore in December
Anil Ambani’s company Reliance Home Finance is stuck in a deep crisis. In December 2020, it has defaulted on a loan of Rs 100 crore. It has not been able to repay the loans of Bank of Baroda, Punjab National Bank, ICICI Bank, HDFC Bank, Canara Bank, Bank of India and Indian Bank. So far, the debt on the company has increased to Rs 4,280 crore. This was the situation till 29 January 2021. On June 7, 2019, an intercreditor agreement was signed to resolve the case of the lender Reliance Home Finance. This information has been given in the RBI circular.
Reliance Home Finance said, it currently has Rs 1000 crore
Reliance Home Finance has said that it currently has cash of Rs 1000 crore (this includes cash, liquid fund investment and fixed deposits.) The company has said that it is facing legal hurdles to pay its debts. The company had a debt of Rs 73.52 crore in the December quarter last year. But in the third quarter of the financial year 2020-21, it increased to Rs 339.55 crore. Reliance Capital, the parent company of Reliance Home Finance, has defaulted 49 times in the repayment of its non-convertible debentures.
Many companies had bid to buy
Kotak Special Situation Fund (KSSF) and Asset Reconstruction Company (India) Ltd for Reliance Home Finance in December. (ARCIL), including six bidders. Only two bidders had made conforming to the rules and made binding bids. Whereas the bids of the four bidders were not binding as well as were not according to the conditions. Earlier, the lenders of Reliance Home Finance extended the Inter-Creditor Agreement (ICA) for another three months. Anil Ambani-promoted Reliance Group company RHF received six bids as part of the debt resolution process.