Anil Ambani: Significantly, the lenders of debt-ridden Reliance Capital (RCap) have agreed to conduct the second phase of the auction. The previous deadline has ended on April 16.
Reliance Capital: The Mumbai bench of the National Company Law Tribunal (NCLT) has extended the deadline for completion of the resolution process of Reliance Capital by three months to 16 July. Significantly, the lenders of debt-ridden Reliance Capital (RCap) have agreed to conduct the second phase of the auction.
The previous deadline has ended on April 16. Sources said the extension of 90 days was needed as the lenders have decided to conduct the second round of auction on April 26.
The second round of auction was to be held on 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. Earlier, the second round of auction was to be held on April 11. But it was postponed to April 26 to resolve some issues raised by the bidders.
Sources said the bidders have asked the lenders to Reliance Capital to ensure that there will be no further talks after the completion of the second round of auction and after that the resolution process will be finalised.
The deadline for completing the resolution process of RCAP has been extended several times in the past. The major concern of the bidders is to complete the process as per the Insolvency and Bankruptcy (IBC) and Request for Resolution Plan (RFRP) guidelines.
This is because in the first round of auction the bids of the Hinduja group company were submitted after the auction. In the first round of auction held in December last, Torrent had made the highest bid of Rs 8,640 crore. Hinduja group company IIHL had earlier made a bid of Rs 8,110 crore, which was later revised to Rs 9,000 crore.
