RCap insolvency case: Setback for Torrent as SC refuses to stay NCLAT order

He torrent group had filed an application with the Supreme Court (SC) for an urgent hearing, as the Creditors' Committee (CoC) of the insolvent Reliance Capital Ltd was scheduled to hold the second round of bidding on that date.

The RCap affair

In it RCap problem, Torrent Investments had emerged as the highest bidder with a dispute resolution plan. $8,640 crores.

However, the CoC of trust capital decided to carry out a second challenge mechanism and then Hinduja Group firm Indusind International Holdings Ltd (IIHL) submitted a revised offer.

This was disputed by Torrent Investments with NCLT's Mumbai bank.

Earlier, on February 2, NCLT said that the challenge mechanism for financial offers concluded on December 21 of last year, with Torrent Investments' offer in $8,640 crore being the highest.

Torrent Investments had entered a guilty plea on January 9, asking the court to strike down the lenders' plan to hold a new auction for the Reliance Capital acquisition. IIHL then also filed a petition challenging the NCLT order.

Torrent Investments was the highest bidder offer $Rs 8,640 crore in the latest round of the ''challenge facility''.

IIHL has also challenged the NCLT order in the appellate court.

Torrent challenged the IIHL's bid in the NCLT, although the company itself reviewed its own bid for $Rs 8,640 crore by offering the full amount in cash upfront instead of $Rs 3,750 crore offered in the auction.

The corporate insolvency was commenced against Reliance Capital in November 2021 to recover approximately $Rs 40,000 crore of unpaid loans.

An initial tender was issued on April 26, 2022, and four applicants (Torrent Investments, IIHL, Cosmea Financial-Piramal Group, and Oaktree Capital) submitted their offers.

The CoC was of the opinion that the values ​​of the offers that have been received are not acceptable and a challenge mechanism process was initiated.