NEW DELHI: Piramal Capital and Housing Finance Ltd have withdrawn the insolvency proceedings against Reliance Power Ltd.
Piramal Capital and Housing Finance Ltd has withdrawn the application made against Reliance Power Ltd under section 7 of the Insolvency and Bankruptcy Code 2016, a BSE filing stated.
This follows an out-of-court settlement between both companies over a Rs 526 crore loan default by Reliance Power and its subsidiary Reliance Natural Resources Ltd (RNRL).
In 2010, RNRL merged with Reliance Power.
RNRL had defaulted on a loan of Rs 526 crore obtained from the erstwhile Dewan Housing Finance Corporation Ltd (DHFL).
The Piramal Group acquired DHFL in 2021 and merged it with Piramal Capital and Housing Finance.
In March this year, Piramal Capital initiated bankruptcy proceedings against Reliance Power under section 7 of the IBC, 2016 in the NCLT Mumbai to recover dues.
In July, during a hearing on Piramal Capital's application, both the companies informed the NCLT (National Company Law Tribunal) that they were engaged in talks to settle the matter through mutual consent.