Lenders to take up loan settlement of Religare Fin

NEW DELHI: Religare Enterprises (REL) on Wednesday said lenders to Religare Finvest (

RFL

) have agreed to consider a one-time settlement (

OTS

) offer proposed by its debt-ridden subsidiary.

Religare has resolved many legacy issues left over by its erstwhile promoters Shivinder Singh and his brother Malvinder Singh, including settlement with Sebi and becoming debt-free, the nonbanking financial company (

NBFC

) said in a statement.

RFL has received a communication dated May 31, 2022 from its lead lender informing that in a meeting held on May 20, lenders have in principle agreed to consider the OTS proposal of RFL and to put up the same to their respective authorities, REL said.

RFL, which has been a victim of alleged siphoning off of funds by its erstwhile promoters, has initiated legal actions for recovery and begun its path towards revival, it added. The company has been in financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters.