MUMBAI: The Mumbai bench of the National Company Law Tribunal (NCLT) has extended the deadline for completing the resolution process of Reliance Capital by three months to July 16 as the earlier deadline of April 16 has already passed.
The lenders to Reliance Capital, have decided to hold the auction for the sale of assets Anil Ambani-promoted company undergoing insolvency proceedings on April 26. The 90 days deadline extension was necessitated as the lenders decided to hold a second round of auction on April 26 in order to maximise the recovery from the sale of Reliance Capital assets. The deadline to complete the resolution process of RCap has been extended multiple times in the past.
IndusInd International Holdings Ltd (IIHL) of Hinduja Group; Torrent Investment and Singapore-based Oaktree will be participating in the extended challenge mechanism (second round of auction). There are still some issues that need to be ironed out and discussions are still going on between bidders and banks, said a source.
The bidders want an assurance that the lenders will not go for another round of auction even if the offers are below the liquidation value of Rs13000 crore. The banks and other creditors are unwilling to agree to this condition. According to lenders, the main idea for holding the auction is to get maximum value for the assets. Earlier the second round of auction was scheduled for April 11, but it was postponed to April 26.
All the bidders have asked for the resolution plans to be compliant with the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP), as in the earlier auction held on 21 December, the bidder's plans were found to be non-compliant.