The company said that as already intimated in the communication dated September 21, 2019, in a completely biased, unwarranted and unjustified rating action on September 20, 2019, CARE Ratings had downgraded the Company’s entire outstanding debt to default “CARE D” rating, even though there were no overdues on principal or interest payment to any lender.
Further to the above, as on October 11, 2019, that this rating downgrade has initiated acceleration, of various facilities and consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next 8 years till March 2028, as per the original terms of debt.
It is expected that the debt servicing of the Company in relation to the accelerated amounts and otherwise will be delayed, said company in a regulatory filing.
Notably, the Company is unable to proceed with asset monetization due to prohibition on the Company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues, pursuant to Order dated November 20, 2019 and March 15, 2021 passed by the Hon’ble Delhi High Court, and Orders dated December 3, 2019 and December 5, 2019 passed by the Hon’ble Debts Recovery Tribunal, Mumbai and Orders dated November 28, 2019, November 4, 2020, and March 5, 2021 passed by the Hon’ble Bombay High Court, resulting in non-payment of the interest and principal obligation due on September 9, 2021 with respect to the Non-Convertible Debentures.
At around 9:35 AM on Monday, Reliance Capital was trading at Rs18.92 per piece up by Rs0.9 or 4.99% on the BSE.