JOIN US Reliance Infrastructure (RInfra) controlled Reliance Defence and Engineering (RDEL), has received approval from the CDR Empowered Group for its exit from the corporate debt restructuring (CDR) scheme.
As part of the refinancing scheme approved by the lenders, the door-to-door tenure of RDEL’s term loans stands extended to 18 years. Pursuant to the refinancing scheme, RDEL’s existing debt of about Rs 650 crore will also be converted into equity shares at a price of Rs 59.35 per equity share, RDEL said.
In line with the RBI approval, RInfra through its subsidiary has also increased its shareholding in RDEL to nearly 31%, the company added.
RDEL has large ship building/repair infrastructure in India, which has one of the largest dry docks in the world.
The company is the first private sector company in India to obtain the licence and contract to build naval offshore patrol vessels (NOPVs). The shipyard has the only modular shipbuilding facility in India with a capacity to build fully fabricated and outfitted blocks.
Shareholders of RDEL had already approved the issue of equity shares to lenders by conversion of debt, at the extraordinary general meeting held on March 20, 2017, with an overwhelming majority of 100%.