RCap lenders reschedule second auction to April 26
2 min read . Updated: 12 Apr 2023, 07:25 AM IST
Premium- In February of the previous year, the RBI-appointed administrator had called for expressions of interest for the sale of Reliance Capital.
The creditors of financially troubled Reliance Capital (RCap) have rescheduled the second auction for April 26, which was originally planned for April 11.
This decision was made during a Committee of Creditors meeting held on Tuesday, PTI reported citing sources.
According to the sources, the bidders who have confirmed their participation in the second round of auction are IndusInd International Holdings Ltd (IIHL) of Hinduja Group, Torrent Investment and Singapore-based Oaktree.
Bidders are primarily focused on the compliance of the resolution plan with the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP) guidelines.
In the initial round of the auction, the Hinduja Group company submitted a bid after the auction date, which is currently being challenged in the Supreme Court by Torrent Investment, as they were the highest bidder.
According to sources, the Committee of Creditors (CoC) needs to include the Supreme Court's order in the Challenge Mechanism.
Additionally, the Administrator has approached the National Company Law Tribunal (NCLT) to request an extension of the deadline for completing the resolution process until May 30.
The deadline to complete the resolution process of Reliance Capital has been extended multiple times in the past.
The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.
The RBI appointed Nageswara Rao Y as the administrator in relation to 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 Insolvency and Bankruptcy Code (IBC).
Srei Group NBFC and Dewan Housing Finance Corporation (DHFL) were the other two entities involved in the situation.
Following this, the central bank filed an application for the initiation of Corporate Insolvency Resolution Process (CIRP) against the company at the Mumbai bench of the National Company Law Tribunal.
In February of the previous year, the RBI-appointed administrator had called for expressions of interest for the sale of Reliance Capital.