Reliance Power Settles Rs 38.72 bn Guarantor Dues for Vidarbha Industries
Additionally, Reliance Power confirmed that it had resolved all disputes with CFM Asset Reconstruction (CFM). The company stated that 100 per cent of VIPL's shares had been pledged in favour of CFM, in exchange for the release and discharge of the corporate guarantee provided by Reliance Power.
In accordance with the settlement agreement, Reliance Power, along with its subsidiaries Rosa Power Supply Company and VIPL, and CFM Asset Reconstruction, formalised an agreement to address the outstanding debt. Following this, a release deed was executed, and Reliance Power, Rosa, and VIPL agreed to withdraw all legal proceedings they had initiated against CFM. Similarly, CFM agreed to withdraw all proceedings, including an insolvency application, that it had initiated against Reliance Power and Rosa.
Furthermore, a pledge of the remaining 92.60 per cent shareholding of VIPL in favour of Axis Trustee Services was established.
Following the settlement, Reliance Power reported that its net worth stood at Rs 111.55 billion as of June 30, 2024, on a consolidated basis.