Reliance Capital suitors seek 4-month deadline extension to submit binding bids
Premium- As per details, the last date for submission of binding bids, along with Earnest Money Deposit (EMD) of ₹75 crore, is 29 September.
Debt-ridden Reliance Capital Limited (RCL)'s suitors have sought extension of up to 4 months for submission of binding bids as part of its resolution process.
The US-based asset management fund Advent has sought extension by 16 weeks, while Piramal Finance has sought additional time of 12 weeks. As per details, the last date for submission of binding bids, along with Earnest Money Deposit (EMD) of ₹75 crore, is 29 September.
A similar extension of timeline for filing of binding bids have been sought by other bidders. IndusInd Bank has sought a 10 weeks' extension, Oaktree has asked for 12 weeks and Zurich Re has requested for 8 weeks extension.
The Committee of Creditors (CoC) will be meeting in the coming week to decide on a time extension to maximise the value for lenders and ensure maximum binding bids for Reliance Capital's assets, says a PTI report.
The timeline for filing of the final resolution plan with the National Company Law Tribunal (NCLT) is November 1, 2022.
Earlier in August, six bids -- from Torrent, IndusInd Bank, Oaktree Capital, Cosmea Financial, Authum Investment, and B Right Group -- were received for the entire assets of Reliance Capital. These bids were in the range of ₹4,500 crore for the company, which has eight different business verticals.
Three suitors -- Piramal Finance, Zurich Re, Advent -- have submitted bids between ₹3,500 crore and ₹7,000 crore only for Reliance General Insurance business. While, Choice Equity and Global Fincap are among the bidders for other assets of RCL.
On Novermer 29, 2021, the Reserve Bank of India (RBI) had superseded the board of RCL in view of payment defaults and serious governance issues and appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company.
After Srei Group NBFC and Dewan Housing Finance Corporation (DHFL), this 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).
With PTI inputs.
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