Piramal Capital Withdraws Insolvency Proceedings Against Reliance Power
IANS 16 November 2022
Piramal Capital has withdrawn the insolvency proceedings against Reliance Power Ltd.
Reliance Power, in a stock exchange disclosure, has informed that the Piramal Capital and Housing Finance has withdrawn the application made against Reliance Power Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016.
This follows an out-of-court settlement between both the companies Rs526 crore loan default by Reliance Power and its subsidiary, Reliance Natural Resources Ltd (RNRL).
RNRL had in 2010 merged with Reliance Power.
RNRL had defaulted on a loan of Rs526 crore, obtained from the erstwhile Dewan Housing Finance Corporation Ltd (DHFL).
The Piramal group had acquired the DHFL in 2021 and merged with Piramal Capital and Housing.
After that, Piramal Capital, in March this year, initiated bankruptcy proceedings against Reliance Power under Section 7 of the IBC 2016, in NCLT (national company law tribunal) Mumbai, to recover the dues.
In July, during a hearing on the Piramal Capital's application, both the companies had informed NCLT that they were engaged in talks to settle the matter, by consent.
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