After RInfra, lenders to Reliance Power sign debt-resolution pact

Reliance Power (RPower) on Friday informed the stock exchanges its lenders entered into an inter-creditor agreement (ICA) last week, kicking in a six-month standstill period to resolve its debt issues. The announcement comes a day after Reliance Infrastructure (RInfra) made a similar announcement.

Lenders to Vidarbha Industries Power (VIPL), a subsidiary for RPower, also signed the ICA, giving the Maharashtra-based power plant 180 days time to implement a resolution plan.

“RPower’s six lenders have signed the ICA on July 6. According to the RBI Circular of June 7, 100 per cent of its lenders have signed the ICA for the resolution of RPower’s debt,” the company said in a statement. An ICA allows for all lenders to decide a resolution for the company’s debt collectively. Individual creditors cannot take any separate action in relation to the debt given and collateral taken from the company.