Reliance Global (RELI) Group has repaid approximately $5.55M, or approximately 50% of its long term debt, a strategic action that reduces its leverage, strengthens its balance sheet, and enhances financial flexibility. The repayments were funded through proceeds from the recently announced asset sale of Fortman Insurance Services, a wholly owned subsidiary, which generated $5M in cash for the Company, with the remainder coming from the release of cash collateral held in restricted cash accounts. As a result, annual principal, interest and service fee payments are expected to decline from approximately $2.95M to $1.1M – a reduction of over $1.8M, or 61%.
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