By Jeanette Rodrigues
Bondholders of Reliance Home Finance Ltd. have petitioned India’s National Company Law Tribunal to recover 35 billion rupees ($495 million) after the firm missed payments, Economic Times reported citing a copy of the application.
IDBI Trusteeship, which represents the bondholders, wants the tribunal to seize Reliance Home Finance’s assets and bar the company from agreeing to any debt resolution deal with other lenders. The petition was under the Companies Act and a bankruptcy application is “not actively under consideration for now, according to the report.
Reliance Home Finance said it would challenge the petition.
Its bondholders include Nippon India Mutual Fund, SBI Mutual Fund, Indian Iron and Steel PF, an arm of sovereign-backed SAIL, Oriental Bank of Commerce, Emami group entity Frank Ross, the National Bank for Agriculture and Rural Development, and Maharashtra government-owned SICOM, according to the report.
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