India’s Reliance Capital delays payment of another debenture series

By Sarah Lizee

Olympia, Wash., June 25 – Reliance Capital Ltd. is unable to proceed with its planned asset monetization, resulting in a delay of its debt servicing of the interest and principal obligations due on June 25 for its nonconvertible debentures (ISIN: INE013A08309), according to a notice.

The company said that “in a completely biased, unwarranted and unjustified rating action on Sept. 20, 2019, CARE Ratings (CARE) had downgraded the company’s entire outstanding debt to default ‘CARE D’ rating, even though there were no overdues on principal or interest payment to any lender.”

Reliance said the downgrade has initiated acceleration of various facilities by some of its lenders and consequential demands for immediate payment of amounts that were otherwise due in a phased manner over the next eight years until March 2028.

The company has issued similar notices recently for several other series of its nonconvertible debentures.

Reliance Capital is a financial services holding company based in Mumbai.

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