- The company completes repayment of over Rs 9,000 crores to country’s banking system
- RFL is ready to resume operations with renewed vigour and strategic clarity
- This, however, is subject to removal of Corrective Action Plan (CAP) placed by RBI.
NE BUSINESS BUREAU
NEW DELHI, FEB 27
Religare Enterprises Limited (REL) on Monday announced that its wholly-owned subsidiary, RFL, has successfully cleared all its debts with external lenders, effectively resolving all legacy issues. The debt resolution initiative has resulted in clearing the default status of RFL and has made it external debt-free. It is a significant milestone in its revival journey towards financial stability and operational efficiency. RFL is now ready for fresh lending business.
RFL diligently repaid over Rs 9,000 crores to the country’s banking system through collections and with the support of REL. Through the One-Time-Settlement (OTS), RFL completed the debt repayment of Rs 2,178 crore to 16 external lenders on 8th March 2023, ahead of schedule.
This debt resolution marks the culmination of efforts of the management to address legacy issues stemming from the “misconduct and siphoning off funds” from REL by erstwhile promoters, it said.
RFL, in accordance with the terms of the sanction letters received under the OTS, had signed the settlement agreement with 16 lenders in December 2022 for full and final settlement.
With the external debt settlement completed, RFL is ready to resume operations with renewed vigour and strategic clarity, aiming to carve a niche for itself in the Micro and Small Enterprise (MSE) lending segment subject to removal of CAP placed by RBI.
