Financially troubled creditors of Reliance Capital (RCap) have rescheduled the second auction for April 26, originally scheduled for April 11.
This decision was made during a meeting of the Creditors' Committee held on Tuesday, PTI reported citing sources.
According to the sources, the bidders who have confirmed their participation in the second round of the auction are Hinduja Group's IndusInd International Holdings Ltd (IIHL), Torrent Investment and Singapore-based Oaktree.
Bidders are primarily focused on compliance of the resolution plan with the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP) guidelines.
In the initial round of the auction, the Hinduja Group company submitted a bid after the auction date, which is currently being challenged in the Supreme Court by Torrent Investment, as it was the best bid.
According to the sources, the Committee of Creditors (CoC) needs to include the order of the Supreme Court in the Challenge Mechanism.
Additionally, the Administrator has addressed the National Company Law Tribunal (NCLT) to request an extension of the term to complete the resolution process until May 30.
The deadline to complete Reliance Capital's resolution process has been extended several times in the past.
The Reserve Bank of India (RBI) on November 29, 2021 replaced the board of Reliance Capital in view of payment defaults and serious governance issues.
The RBI appointed Nageswara Rao Y as administrator in connection with the company's Corporate Insolvency Resolution Process (CIRP).
Reliance Capital is the third major non-bank financial corporation (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).
Srei Group NBFC and Dewan Housing Finance Corporation (DHFL) were the other two entities involved in the situation.
Following this, the central bank filed an application for the commencement of the Corporate Insolvency Resolution Process (CIRP) against the company in the Mumbai court of the National Company Law Tribunal.
In February of the previous year, the RBI-appointed trustee had solicited expressions of interest for the sale of Reliance Capital.
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