However, no final decision on the matter can be taken by the lenders of RCL now as the Supreme Court’s stand on the Torrent Investment’s plea against the second round of auction held by the lenders of RCL is still pending with the apex court
Mumbai:
The National Company Law Tribunal on Tuesday approved Hinduja Group firm IndusInd International Holdings'(IIHL’s) Rs 9,650-crore resolution plan for Reliance Capital Ltd(RCL).
The Mumbai bench of the NCLT approved the plan submitted by IIHL in June 2023 in the second round of bidding for the debt-laden company.
A detailed order in the matter is expected later in the day.
However, there is a case pending in the Supreme Court on the Torrent Investment’s plea against the second round of auction held by the lenders of RCL.
Apart from other financial entities, RCL is also the holding company of two insurers-Reliance General Insurance and Reliance Nippon Life Insurance.
IIHL had emerged as the highest bidder with an offer of ₹9,650 crore to take over debt-ridden Reliance Capital in the second round of auction concluded in April 2023.
Earlier, the Competition Commission of India (CCI) has already approved acquisition of controlling stake in Reliance Capital Ltd by Hinduja group-owned entities like IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises LLP.
RCL is undergoing insolvency resolution proceedings initiated under the Insolvency and Bankruptcy Code (IBC).
Under the resolution plan cleared by the Mumbai bench of NCLT, creditors to the company will take a massive 63 per cent haircut. Out of the total claims of Rs 38,526.42 crore, only Rs 26,086.75 crore were admitted by the tribunal.
The winning bidder has agreed to pay only 37 per cent or Rs 9,661 crore of the admitted claims, which means a 63 per cent haircut on the exposure of the creditors.
In June, the lenders of the crippled Reliance Capital accepted the revised Rs 9,661 crore bid by IndusInd International Holdings.
In November 2021, the Reserve Bank of India (RBI) superseded the board of Reliance Capital in view of payment defaults and serious governance issues.