If a PC is implemented, lenders would sign the ICA during the review period. An agreement signed by lenders, representing 75 per cent of the value of outstanding loans or 60 per cent of lenders per number, would be binding on all lenders. The goal of an ICA is to reach a time solution. In July 2019, lenders signed separate inter-creditor agreements (ICAs) for Reliance Home Finance and Reliance Commercial Finance to find a solution in six months, according to the Reserve Bank of India circular of June 7. The ICAs have been extended until September 30, 2020. “The company`s ability to meet its obligations depends to a large extent on events of great uncertainty, including loan restructuring and loan realization under the Inter-Creditor Agreement (ICA), which could create doubts about its ability to continue as an ongoing business,” the auditors said. Financial creditors have a total commitment of 3,986 francs to RHF. Bank of Baroda (BoB) is the principal creditor of the troubled real estate developer. RHF`s net loss doubled in the March quarter to 238 kronor, compared to a net loss of 110 kronor in the same quarter of the previous year. Under an earlier agreement, the company`s lenders entered into an Inter-Creditor agreement to obtain a debt settlement plan pursuant to the June 7, 2019 circular issued by the Reserve Bank of India regarding the Prudential Framework for Resolution of Stressed Assets.
Lenders at troubled mortgage lender Reliance Home Finance (RHF) have extended the Inter-Creditor Agreement (ICA) until June 30, 2020, sources in the matter told FE. “Initially, we extended ICA until March in the hope of a resolution, but now it has been extended until June 30,” the source added. The expansion of the ICA is important because it indicates that the banks are still hoping for a possible resolution for rhf. It reported a self-sustaining net loss of 852 euros for a total income of 332 euros in six months to 31 March. The cost of financing amounted to 591 euros during the same period. “The resolution process is initiated by RCFL credit lenders who signed the agreement between the creditors on July 6, 2019 and are subject to the RBI circular. On July 6, 2019, lenders accounted for approximately 91% of RCFL`s total outstanding debt. RCFL`s remaining lenders include investment funds, pension funds and others, and the agreement of these lenders may also be required with respect to the implementation of approved resolution plans, depending on the terms of their underlying contracts,” the statement said. In addition, Reliance Home Finance stated that its lenders had reached an agreement between the creditors to reach the resolution plan in accordance with the June 7, 2019 circular issued by the Reserve Bank of India.