RCap defaults on bond repayment obligations

Reliance Capital on Friday said it has defaulted on interest and principal obligations on bonds due on November 15, 2019.

On September 20, 2019, CARE Ratings (CARE) had downgraded the company's entire outstanding debt to default "CARE D" rating.

Reliance Capital said the rating was downgraded even though there were no overdues on principal or interest payment to any lender.

This rating downgrade has initiated acceleration, etc. of various facilities by certain lenders and consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next eight years till March 2028, as per the original terms of lending, Reliance Capital had said earlier in October.

"It is expected that the debt servicing of the company in relation to the accelerated amounts and otherwise will be delayed.

"Accordingly, as regards the Non-Convertible Debenture, the interest/principal obligations due on November 15, 2019, is also delayed," it said.

Reliance Capital shares closed at Rs 21.05, down 4.97 per cent on BSE on Friday.