Reliance Power Clears Rs 3,872 Crore Guarantor Obligations For Vidarbha Industries Power
Following the settlement, 'the networth of Reliance Power is Rs 11,155 crore as on June 30, 2024, on consolidated basis,' the firm added.
(Source: Reliance Power website)
Reliance Power has settled Rs 3,872 crore guarantor obligations for its subsidiary Vidarbha Industries Power, the firm said in a stock exchange filing.
"The entire obligations of the company as a guarantor on behalf of Vidarbha Industries Power Ltd. stands fully settled resulting in release and discharge of corporate guarantee, understandings and all obligations and claims thereby in relation to the outstanding debt of VIPL amount to Rs 3,872.04 crore," Reliance Power said.
The firm said it has settled all disputes with CFM Asset Reconstruction Private Ltd., "100% shares of VIPL have been pledged in favour of CFM against the release and discharge of corporate guarantee given by Reliance Power."
According to the terms of the settlement agreement Reliance Power, along with its subsidiaries Rosa Power Supply Company and VIPL, and CFM Asset Reconstruction Private Ltd., have formalised a pact to settle the outstanding debt.
Thereafter, the release deed was executed and Reliance Power and its subsidiaries, Rosa and VIPL, will withdraw all proceedings initiated by them against CFM.
CFM would also withdraw all proceedings initiated by it against Reliance Power and Rosa which included an insolvency application.
A pledge of balance 92.60% shareholding of VIPL in favour of Axis Trustee Services Ltd has been created.
Following the settlement, 'the networth of Reliance Power is Rs 11,155 crore as on June 30, 2024, on consolidated basis,' the firm added.
