New Delhi: Sources said the lenders to debt-ridden Reliance Capital (RCAP) have again postponed the second auction proposed for Tuesday. While no new date has been decided yet, sources said, it could be finalized in a week or two. Last week, the lenders deferred the second auction to April 11.
According to sources, the bidders who have confirmed their participation in the second round of auction include Hinduja Group’s IndusInd International Holdings Ltd (IIHL), Torrent Investments and Singapore-based Oaktree. ,Also read: 14th installment of PM-KISAN is coming on this date? View a step-by-step guide to apply,
The major concern of the bidders is the compliance of the resolution plan with the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP), guidelines, as in the first round of auction, the Hinduja Group firm submitted bids after the auction. , ,Read also: This employee chose to quit his 6-figure salary job rather than return to the office full-time,
This post-auction bid is being challenged in the Supreme Court by Torrent Investments as it was the highest bidder as per the auction. Sources said the Committee of Creditors (CoC) would also have to include the Supreme Court order in the challenge mechanism.
Meanwhile, the administrator has moved the NCLT to extend the deadline for completing the resolution process till May 30. The deadline for completing the resolution process of Reliance Capital has been extended several times in the past.
The Reserve Bank of India (RBI) superseded the board of Reliance Capital on November 29, 2021 in view of payment defaults and serious governance issues. The RBI appointed Nageswara Rao Y as the administrator in connection with the Corporate Insolvency Resolution Process (CIRP) of the firm.
Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).
The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The central bank subsequently filed an application in the Mumbai bench of the National Company Law Tribunal for initiation of CIRP against the company.
In February last year, the RBI-appointed administrator had sought expressions of interest for the sale of Reliance Capital.