RInfra: Lenders have cleared debt agreement

It can be noted that the RBI mandates only 75 percent of lenders by value and 60 percent of them by the number to sign the inter-creditor agreement for a resolution plan.

‘As per the June 7 Reserve Bank circular, 100 percent of our lenders have signed the inter-creditor agreement for resolution of our debt,’ Reliance Infrastructure’s said in a statement Thursday.

According to the new circular, if a borrower defaults to any of the lenders, others will have to review the account within 30 days from the default, called as review period.

During the review period, banks may decide on a resolution plan and wherever a plan has to be implemented, all lenders will have enter into an ICA within those 30 days to finalise and implement the resolution plan, which has to be approved by 65 percent of the financial creditors.

The inter-creditor agreement shall provide that any decision agreed by lenders representing 75 percent by value of total outstanding credit facilities and 60 percent of lenders by number shall be binding upon all the lenders.

With the signing of the inter-creditor agreement, it has got a standstill period for 180 days.