Lenders Raise Concerns Over Rs 7,300 Cr Debt Mobilisation by IIHL for Reliance Capital

Sunday, 25 August 2024, 09:05

Lenders to Reliance Capital have raised significant concerns regarding the Rs 7,300 crore debt mobilisation by IIHL. These lenders question key terms, including equity share pledges and liquidity. As Reliance Capital continues to navigate financial troubles, scrutiny from creditors is intensifying, spotlighting risks in the financial landscape.
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Lenders Raise Concerns Over Rs 7,300 Cr Debt Mobilisation by IIHL for Reliance Capital

Concerns from Lenders

Lenders to Reliance Capital are expressing serious concerns over the recent Rs 7,300 crore debt mobilization by IIHL. This substantial amount raises questions about the financial stability of Reliance Capital as it struggles with existing debt.

Key Conditions in Term Sheets

The key conditions stipulated in the term sheets for the drawdown include the pledging of equity shares of Reliance Capital that have been issued to IIHL. This requirement has raised flags among stakeholders.

Liquidity and Credit Risk

With lenders increasingly wary, liquidity issues may arise, further complicating Reliance Capital's recovery. The intensifying scrutiny forms part of a larger conversation about risk management in corporate financing.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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