MUMBAI: The resolution process of Reliance Capital hit another roadblock as Credit Suisse, on Wednesday, said the Committee of Creditors (CoC) does not have the power to approve the resolution plan pending litigation in the National Company Law Tribunal (NCLT).
Credit Suisse claimed in a letter to the Administrator that its debt of Rs 659.80 crore, which had been claimed by it as a financial creditor, was rejected by the Administrator. This has been challenged by it in the NCLT Mumbai and the matter is pending.
Credit Suisse claimed it is a secured creditor as it has pledge created over RCap’s entire shareholding in Reliance General Insurance. IDBI Trusteeship Services holds these shares on its behalf, in the capacity of trustee/security agent.
“The cost of CIRP would invariably increase in the event the resolution plan has to test waters post the decision of the Claim Rejection IA which would then once again lead to reconstitution of the CoC. Besides, it would also lead to multiplicity of proceedings that would emanate from such unilateral action,” said the letter. Hinduja Group firm IndusInd International Holdings has emerged as the highest bidder with an offer of Rs 9,650 crore in the second round of auction held last month.