Debt

Debt Financing

Lead lender SBI gives nod for debt restructuring of Religare's NBFC arm

Business Standard  

The revised debt restructuring proposal for Religare Finvest Ltd (RFL) has entered the final stage with lead lender State Bank of India giving its preliminary nod for the rejig. RFL, an NBFC arm of Religare Enterprises Ltd, has been barred from undertaking fresh business as it is under the RBI's corrective action plan since January 2018 due to its weak financial health. To fund the debt recast of RFL, Religare Enterprises plans to raise capital shortly. The earlier debt restructuring plan was rejected by the RBI in March 2020 as the suitor - TCG Advisory Pvt Ltd, a part of The Chatterjee Group - for RFL was not found to be 'fit and proper' by the regulator. RFL has been in financial distress due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. Multiple investigative agencies are probing the case of financial bungling of about INR 4,000 crore.