MUMBAI, June 29 (Reuters) - India’s Reliance Home Finance Ltd on Saturday said the maturity date for 4 billion rupees ($58.02 million) of non-convertible debentures (NCDs) has been extended by four months, till Oct. 31 due to “continuing severe liquidity crisis in the sector”.
“The extension of maturity has been made purely to address timing mismatches in receipt of proceeds from the ongoing monetisation of retail asset pools of the company,” Reliance Home Finance said in a statement, adding it has already monetised 50 billion rupees of retail assets.
The company, controlled by business tycoon Anil Ambani, said the extension of maturities by mutual consent is a recognised global practice and “does not in any sense constitute a default.”
Ambani, once among India’s top billionaires, has seen his wealth erode in the past five years due to burgeoning debt at firms in his group.
His diversified telecoms to financial services and infrastructure group has been struggling to make debt repayments on time. ($1 = 68.9400 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Richard Borsuk)