Reliance Group Holdings did not make the $291.7 million payment on its 9 percent Senior Notes that matured November 15, or the interest payment on the 9 3/4 percent Senior Subordinated Debentures also due that day. The company is continuing discussions to restructure with its bondholders, bank lenders, and insurance regulators.
“The bank group continues to be in discussions with the company on the terms of a restructuring that is in the best interests of all of its stakeholders,” a spokesperson for The Chase Manhattan Bank, administrative agent for the bank lenders, told Reuters Securities.
“We appreciate the continued support of our bondholders, bank lenders and the insurance regulators. In the meantime we are moving forward with the run-off of our operations,” Reuters reported George Baker, Reliance Group Holdings chief executive, as saying.
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