Lenders of Reliance Home Finance Ltd have extended the bidding deadline to next month-end following requests from the bidders.
As per a source close to the development, only two bidders -- Avenue-Arcil consortium and Anthum Investments -- submitted binding bids. Four other companies made non-binding bid and with riders. Reliance Home Finance was sent for debt resolution by the banks after it failed to repay its debt worth Rs 12,000 crore.
As the deadline was extended, a source said the two bidders opposed the extension of deadline and threatened to walk away from the process.
While Avenue, a US-based fund and ARCIL, an Asset Reconstruction Company (ARC), have made a joint bid, Authum Investment & Infrastructure Limited, a listed non-banking finance company (NBFC), has also put in its bid.
The other four bids, which are non-binding in nature, have also not placed the mandatory bid bond of Rs. 10 crore and have sought more time to complete its due-diligence.
The other two ARCs namely, Invent and Alchemist have also submitted conditional bids which are non-compliant with the bids condition and have not paid the mandatory bid bond of Rs 10 crore.
The lenders at their meeting held on December 17, have also invites revised bids from all the bidders, so that all bidders can be accommodated.
In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of Reliance Home Finance and Reliance Commercial Finance, both arms of Reliance Capital. A separate process for Reliance Capital and its assets is already on with the banks receiving 60 EoIs for the company as well as for its assets. JM Financial and SBI Caps are running the sale process for Reliance Capital assets.
The resolution process of Reliance Home Finance is being managed by BoB Capital Markets (BoB Caps) and Ernst & Young (EY).
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