An Anil Ambani led company, Reliance Home Finance missed payment worth Rs 400 crore towards maturing non-convertible debentures (NCDs) on Friday. However, on Saturday, it said that the same has been extended by four months till October 31, 2019.
An ADAG spokesperson said in an email, “In view of the continuing severe liquidity crisis in the sector, as now formally recognised even by RBI, the maturity of certain NCDs of Rs 400 crore has been extended till October 31, 2019, with formal written consent from the concerned debenture trustees and NCD holders.”
According to the company, it has been done to mismatch the timing between receipt of proceeds from an ongoing asset monetisation to meet repayment requirements.
However, rating agencies have revised credit ratings of certain debt instruments over a past few weeks of Reliance Commercial Finance and Reliance Home Finance to ‘default’, or D, grade on concerns over the group’s deteriorating financial profile.