Anil Ambani Attempts To Reassure Investors, Says Committed To Repaying Debt
In an effort to sooth insvestor angst, Anil Ambani, Chairman of the Reliance Group, said that the conglomerate is fully committed to meeting all future debt servicing obligations in a timely manner through asset monetisation.
He went on to say that Reliance Group has made debt servicing payments of over Rs 35,000 crore in the last 14 months through asset monetisation, as the country's financial system failed to provide any support to its companies. This has ultimately hurt the interests of lenders themselves as well as all other stakeholders, he said.
“To compound the matter, the regulatory bodies and courts have not passed any final adjudication order on claims aggregating to over Rs 30,000 crore that are due for more than five to 10 years to our various group companies especially Reliance Infrastructure, Reliance Power and their affiliates,” he said.
The company still managed to make payments in the face of "insurmountable odds and the most challenging financial environment in the country in decades”, he said.
Ambani acknkowledged that ongoing rumours have hurt stocks under the Reliance Group banner and expressed appreciation for the retail shareholders base, adding that their “unstinted support is the bedrock of the young and dynamic group”.
Committed To Repaying Debts, Says Anil Ambani
Anil Ambani reassured investors that the Group was fully committed to meeting all future debt servicing obligations in a timely manner through further asset monetisation plans that are already at various stages of implementation.
Reliance Group Owed Over Rs 30,000 Crore, Says Anil Ambani
Ambani blamed the country’s regulatory institutions and courts, saying that the delay in passing verdicts has kept the group from receiving dues of over Rs 30,000 crore.
“To compound the matter, the regulatory bodies and courts have not passed any final adjudication order on claims aggregating to over Rs 30,000 crore that are due for more than five to 10 years to our various group companies especially Reliance Infrastructure, Reliance Power and their affiliates,” he said.
He further said that the financial system has shown a “total apathy and lack of any support whatsoever", which ultimately only significantly hurt the interests of lenders themselves as well as all other stakeholders.
Reliance Group Has Paid Rs 35,000 crore In Debt In Last 14 Months, Says Anil Ambani
In an effort to reassure investors, he said that the group has paid debt servicing payments of over Rs 35,000 crore in the last 14 months.
These comprise principle payments of a staggering Rs 25,000 crore and interest payments of nearly Rs 11000 crore, he said.
“These payments have been made in the face of insurmountable odds and the most challenging financial environment in the country in decades.”
These payments have been made without any help or support from the country’s financial institutions, he said, adding that there has been zero net addition of liquidity to any of the group companies from the system.
Ambani disclosed that these debt servicing payments have necessarily had to be made almost entirely from asset monetisation and operational cash flows.
Shareholder Support Heartening, Says Anil Ambani
Anil Ambani acknowledged that rumours have damaged value of stocks under the Reliance group banner.
He said that he was personally anguished and deeply concerned for the Group’s over 7 million strong retail shareholders base, adding that their “unstinted support is the bedrock of the young and dynamic group”.
Anil Ambani To Speak Shortly
Anil Ambani, chairman of the Reliance Group will address the media through a conference call today at 11 a.m.
The company did not say what Anil Ambani will speak about in the call.
This comes at the back of Reliance Power Ltd. posting its biggest ever quarterly loss on gas and solar write-offs in the January to March quarter. Reliance Infrastructure Ltd., on the other hand, deferred its quarterly results for the second time.
RECOMMENDED FOR YOU
POPULAR