Reliance Power Resolves Rs 3,872 Crore Guarantor Obligations for VIPL

Reliance Power has successfully settled a guarantor obligation of Rs 3,872 crore for its subsidiary, Vidarbha Industries Power Ltd (VIPL). The resolution includes releasing corporate guarantees and settling disputes with CFM Asset Reconstruction. Consequently, Reliance Power's net worth stands at Rs 11,155 crore as of June 30, 2024.

Reliance Power has successfully settled a significant financial obligation amounting to Rs 3,872 crore for its subsidiary, Vidarbha Industries Power Ltd (VIPL), according to a recent stock exchange filing.

The settlement means the company has released and discharged all corporate guarantees and related claims, finalizing all disputes with CFM Asset Reconstruction Private Limited (CFM). As a result, 100 percent of VIPL's shares have been pledged in favor of CFM.

This comprehensive agreement also includes the withdrawal of all legal proceedings initiated by both parties, including an insolvency application. Following this settlement, the net worth of Reliance Power has increased to Rs 11,155 crore as of June 30, 2024.

(With inputs from agencies.)