Reliance Group has serviced debt of over Rs 35,000 crore in 14 months, says Anil Ambani
BusinessToday.In June 11, 2019
Reliance Group chairman Anil Ambani on Tuesday said the group has serviced debt over Rs 35,000 crore in the past 14 months from April 1, 2018 till May 31, 2019. These comprise principal repayments of Rs 24,800 crore and interest payments of Rs 10,600 crore.
In a bid to allay investors' concerns after Reliance Group stocks tumbled yesterday, Ambani said the payments were done without any additional net funding or liquidity from any lender in these 14 months. "During this entire period, lenders from all categories - whether banks, mutual funds, insurance companies, provident funds or NBFCs - have provided ZERO net additional liquidity or debt to any entity of the Reliance Group," Ambani said.
Ambani said the payment of over Rs 35,000 crore included inter alia debt servicing payments by Reliance Capital Group, Reliance Power group and Reliance Infra Group, and their respective affiliates.
"These payments have been made in the face of insurmountable odds and the most challenging financial environment witnessed in the country in decades," Ambani added. Ambani sought to reassure 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.
Blaming regulatory institutions and courts for some of the group problems, he said 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 is due for more than five to 10 years to our various group companies especially Reliance Infrastructure, Reliance Power and their affiliates," he said adding "final decisions have only been inordinately and repeatedly delayed for one reason or the other."
Edited by Aseem Thapliyal