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Capital says shareholding in RGIC transferred to IDBI Trustee Services

Time:2021-06-21 15:20:00

The shareholding has been transfered upon invocation of pledge by the IDBI Trustee Services, Capital said in a stock exchange filing.

  • The shareholding has been transfered upon invocation of pledge by the IDBI Trustee Services, Capital said in a stock exchange filing

  • In another filing, Capital said interest and principal obligations in regards Non-Convertible Debenture due on Monday has been delayed

  • The firm said CARE Ratings had downgraded its entire outstanding debt to default "CARE D" rating, even though there were no overdues on principal or interest payment to any lender.


Mumbai:  Anil Ambani-led Capital on Tuesday said its shareholding in a wholly-owned subsidiary, General Insurance Company Limited (RGIC), has been transferred to IDBI Trustee Services.

The shareholding has been transfered upon invocation of pledge by the IDBI Trustee Services, Capital said in a stock exchange filing.(reliance888.com)

The company, however, did not disclose financial details.

It further said the Trustee has purported to act on behalf of two parties claiming against the Capital under certain guarantees, while another lender has filed a suit in the High Court of Bombay, claiming inter alia that the aforesaid shareholding in RGIC comprises security for all secured lenders, and the matter is presently sub-judice.(reliance888.com)

"The Company has already been engaged in efforts to monetise its shareholding in RGIC as part of its overall plans for debt reduction," it said.

 Capital says shareholding in RGIC transferred to IDBI Trustee Services does not disclose financial details


As per the filing, the company would take all appropriate steps in the matter as legally advised to protect the interests of its lenders and other stakeholders.

Meanwhile in another filing, Capital said interest and principal obligations in regards Non-Convertible Debenture due on Monday has been delayed.

The company said in a "completely biased, unwarranted and unjustified rating action" on 20 April 2021, CARE Ratings (CARE) had downgraded its entire outstanding debt to default "CARE D" rating, even though there were no overdues on principal or interest payment to any lender.

Referring to an earlier communication to exchanges, Capital said the rating downgrade has initiated acceleration 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 8 years till March 2028.

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

"Accordingly, as regards the Non-Convertible Debenture , the interest/ principal obligations due on June 18, 2021, is also delayed," it said.(reliance888.com)

On Wednesday, the company shares closed at Rs 18.05 apiece on BSE, down 5 percent.