No more debt restructuring for Reliance

DELHI, India - July 13, 2017 - PRLog -- Reliance Defense, a branch of Reliance Infrastructure headed by Anil Ambani is going to bid goodbye to the Corporate debt restructuring (CDR) by the consortium of lenders. All the banks led by IDBI Bank have given their approval. IDBI bank also has given prolonged maturity period of loans worth Rs 6800 crore. RBI too has granted a green light to this exit plan to facilitate the refinancing of the RDEL scheme.

The ministry of defence has given a go ahead to the exit plan and the refinancing scheme along with the confirmation of Indian Navy and Larsen and Turbo (L&T) joining hands with RDEL. This decision has escalated the status of RDEL to that of L&T and has made them the only 2 companies from the private sector to build Landing Platform Docks (LPD) Submarines and Corvette along with government entities.

Financial flexibility will be provided by the exit to the company. Also, the company will have the leverage to reach its business goals easily. Various business avenues will be opened to the RDEL and it is already evident from the 31% hike in shareholders by RInfra post the exit. RDEL's current contract for the coast guard, navy and commercial vessels amounts to over Rs. 5300 crores.

The restructuring schemes have led The Defense Ministry to quit many amendments in its current operations systems. The introduction of 'Make in India' and 'Skill India' program in the Ministry of Defense would be possible through this initiative.

In 2005, Reliance Infrastructure and Offshore Engineering Co. Ltd acquired PipavavDefence which it later renamed to - Reliance Defense and Engineering. Reliance Infrastructure put its plan to exit CDR in motion once it took over PipavavDefence.

Refrence link: http://www.financialexpress.com/industry/lenders-led-by-s...