Reliance Capital News: The Mumbai-bench of the National Company Law Tribunal (NCLT) has extended the deadline for completion of Reliance Capital’s resolution process by three months to July 16 as the lenders agreed to hold a second round of auction to maximize their recovery. expressed.
Earlier, the deadline of April 16 has already passed.
Sources said the extension of the 90-day deadline was necessitated as the lenders decided to conduct the second round of auctions on April 26 to maximize the recovery from the sale of Reliance Capital’s assets.
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.
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Earlier the second round of auction was scheduled for April 11, but it was postponed to April 26 as the lenders needed time to sort out the issues raised by the bidders.
Sources said the bidders have asked the lenders to Reliance Capital to ensure that the resolution plan should be in compliance with the Insolvency and Bankruptcy Code (IBC) and Request Resolution Plan (RFRP).
Sources said the bidders would also seek an assurance from the lenders that there would be no further talks after the second round of auction is over and the resolution process would be finalized after the second round is over. In the first round of auction, the Hinduja Group firm submitted bids on a later date than the auction.
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This post-auction bid is being challenged in the Supreme Court by Torrent Investments as it was the highest bidder. Sources said the Committee of Creditors (CoC) will also have to include the Supreme Court order in the challenge mechanism.
Meanwhile, the administrator has also moved the NCLT to extend the deadline for completion of the resolution process to 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 The Reserve Bank of India (RBI) superseded the board of Reliance Capital on November 29, 2021 in view of payment defaults and serious governance issues.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 IBC.
The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The central bank subsequently filed an application for initiation of CIRP against the company in the Mumbai bench of NCLT. In February last year, the RBI-appointed administrator had sought expressions of interest for the sale of Reliance Capital.