According to reports, bidders are requesting more time to complete the due diligence process, therefore the deadline for submitting a resolution plan for heavily indebted Reliance Capital could be further extended.
The administrator has received letters from a few selected bidders, including Piramal, Torrent, Oaktree, and IndusInd Bank, requesting that the deadline be extended from the current August 10 to September 15.
The deadline for submitting Reliance Capital’s resolution plan has already been pushed back four times. The deadline for submitting applications has been set for May 26.
The Creditors’ Committee (CoC) will meet next week to assess Reliance Capital’s resolution proceedings and discuss the possibility of extending the deadline.
Only 5-6 bidders are currently engaged at the due diligence stage, down from the first 54 Expressions of Interest (EOI) received by Reliance Capital Ltd (RCL).
The CoC has also waived the requirement to deposit Rs75 crore Earnest Money Deposit (EMD) before the first submission date due to the disappointing response to Reliance Capital’s resolution process.
Regulations prohibit Piramal from acquiring a sponsor interest in another life insurance company while holding one in another life insurance company. Piramal Group promotes Pramerica Life Insurance Limited (PLIL).
Due to defaults and major governance challenges, the Reserve Bank of India (RBI) replaced RCL’s board on November 29 last year.
Nageswara Rao Y has been selected by the RBI to serve as the company’s Corporate Insolvency Resolution Process (CIRP) Administrator.
The central bank has recently started bankruptcy proceedings under the IBC against this third non-bank financial company (NBFC). Srei Group NBFC and Dewan Housing Finance Corporation were the other two (DHFL).
RBI subsequently requested that the CIRP be instituted against the company in the Mumbai bench of the National Company Law Tribunal (NCLT).
The RBI-appointed administrator had requested expressions of interest for the sale of Reliance Capital in February this year.