Reliance Power Settles Rs 38.72 bn Guarantor Dues for Vidarbha Industries
POWER & RENEWABLE ENERGY

Reliance Power Settles Rs 38.72 bn Guarantor Dues for Vidarbha Industries

Reliance Power announced that it has settled guarantor obligations amounting to Rs 38.72 billion for its subsidiary Vidarbha Industries Power, according to a stock exchange filing. The company disclosed that the entire obligation as a guarantor on behalf of Vidarbha Industries Power (VIPL) had been fully settled. This settlement resulted in the release and discharge of the corporate guarantee, along with any related understandings, obligations, and claims concerning the outstanding debt of VIPL, which totalled Rs 38.72 billion.

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.

Reliance Power announced that it has settled guarantor obligations amounting to Rs 38.72 billion for its subsidiary Vidarbha Industries Power, according to a stock exchange filing. The company disclosed that the entire obligation as a guarantor on behalf of Vidarbha Industries Power (VIPL) had been fully settled. This settlement resulted in the release and discharge of the corporate guarantee, along with any related understandings, obligations, and claims concerning the outstanding debt of VIPL, which totalled Rs 38.72 billion. 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.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000