The Anil Dhirubhai Ambani Group makes an in-principle standstill with the investors,not to sell the shares till September.
As per the understanding, the lenders will not enforce security or sell any of the promoters’ pledged shares in the event of lower collateral cover or reduced margin due to the recent unprecedented fall in the share prices.
Even though the investors cannot sell their shares till September,the Anil Ambani Group will pay them the regular interests and principal amount.
The value of the promoter stake in Reliance Power, before the unprecedented fall in share prices, was more than Rs 2,500 crore, and would have cleared more than 65 per cent of total promoter borrowings.Reliance Infrastructure Ltd hold 40 per cent equity in Reliance Power.
“We are grateful to our lenders for believing in the intrinsic and fundamental value of our companies, and granting their in principle approval to standstill agreements”said the Anil Dhirubhai Ambani Group spokesperson.