Tuesday, June 28, 2022
Home > Finance News > Shapoorji Pallonji Group, Reliance Home Finance Lenders near settlement

Shapoorji Pallonji Group, Reliance Home Finance Lenders near settlement

Shapoorji Pallonji Group and lenders of Reliance Home Finance (RHFL) are close to reaching an out-of-court settlement over a three-year-old dispute that blocked the resolution of the bankrupt company, said two people aware of the development.

SP group, which had claimed ₹200 crore from RHFL, is likely to agree on a settlement amount of about ₹35-40 crore, one of the persons quoted earlier, said. Once the settlement is reached, the company will file a memorandum of consent with the Delhi High Court.

Soon after the settlement is reached, lenders will distribute the cash lying in the company among themselves on a pro-rata basis, the people cited above said. SP Group did not respond to ET’s request for comments.

Reliance Home Finance, which has total debt of ₹11,200 crore, is a subsidiary of Anil Ambani-promoted Reliance Capital, which is now undergoing insolvency proceedings.

Following an appeal by SP Group, in November 2019 the Delhi High Court prohibited RHFL from disposing of, alienating, encumbering either directly or indirectly any of its assets. This prevented lenders hobbling the debt resolution process. Once a settlement is reached, lenders plan to immediately distribute cash lying in the company on a pro-rata basis instead of selling the company to an already approved buyer, Authum Investment and Infrastructure, the sources said.

The cash in the company is close to ₹2,500 crore. Last June, a resolution plan from Authum Investment and Infrastructure was approved by the majority of creditors who signed the inter-creditor agreement. However, non-ICA members are yet to vote on the plan.

“Getting consent from non-ICA members could delay recovery which initiated almost two years ago. Therefore, lenders plan to distribute the cash in the company immediately while pursuing the sale of the RHFL separately,” said a lender.

Source link

Leave a Reply

Your email address will not be published.

%d bloggers like this: