Taking into account that the second round of the auction has not yet been carried out, it is not possible to conclude the resolution process within the current deadline.
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Posted on 08.04.23, 05:01 am
Reliance Capital (RelCap) lenders may consider extending the deadline to complete the resolution process until May 30 this year, the sources said.
The current term ends on April 16.
Considering that the second round of the auction has not yet been carried out, it is not possible to conclude the resolution process within the current deadline.
Earlier this week, the lenders postponed the second auction until April 11.
The deadline to complete the RelCap resolution process has been extended several times in the past.
On the other hand, the sources said, the three bidders: Hinduja Group's IndusInd International Holdings Ltd (IIHL); Singapore-based Torrent Investment and Oaktree, which will participate in the expanded challenge mechanism (second round of auction), are still engaged with the Creditors' Committee (CoC) on certain issues or concerns raised by them.
Bidders' primary concern is compliance with resolution plans under the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP) guidelines. In the first round of auction, the Hinduja Group firm's bid was submitted after the auction. This post-auction bid date is being challenged by Torrent Investment in the Supreme Court, as it was the highest bidder in the auction.
Therefore, the sources said, this time the bidders want compliance with resolution plans as per IBC and RFRP guidelines, before participating in the second round of auction.
The suitors also seek more transparency from the CoC on the expanded challenge mechanism and have demanded that a separate website be created on the expanded challenge mechanism. The sources indicated that the second round of auction, scheduled for April 11, has been postponed.
