Lenders start voting on resolution plan of RCFL

According to the website of RCFL, it has been re-branded as Reliance Money, and has assets under management worth Rs 11,000 crore.

By Ankur Mishra

Lenders to Anil Ambani-led Reliance Commercial Finance (RCFL) have started voting on the resolution plan of four bidders, sources close to development told FE. The voting process, which began earlier this week on June 7, will continue till June 25, 2021.

The lenders had earlier extended the inter-creditor agreement (ICA) for RCFL till June 30, 2021 for resolution of the company. According to June 7 circular of the Reserve Bank of India, lenders need to extend the time period of the pact if an account has not been resolved within 180 days of signing of the ICA. The lenders had signed the ICA to resolve Reliance Commercial Finance in July 2019.

RCFL has been constantly defaulting on payments to lenders, with the latest default occurring on May 25 according to disclosures made by the company to the stock exchanges. Apart from RCFL, the promoter entity, Reliance Capital, had also defaulted on bank loans. The non-bank lender has also failed to make payments to bondholders at least 50 times in FY21.

According to the website of RCFL, it has been re-branded as Reliance Money, and has assets under management worth Rs 11,000 crore. The company is a 100% subsidiary of Reliance Capital. RCFL offers financial products, including small and medium enterprise loans, loans against property, infra financing, agriculture loans, and supply chain financing.

The net loss of Reliance Commercial Finance widened to Rs 1,417 crore during the March quarter, compared to Rs 852 crore in the corresponding quarter last year. Similarly, the total income declined 12% year-on-year to Rs 293 crore.