The Torrent Group is expected to submit its petition to the Supreme Court (SC) on Monday for an urgent hearing, as the Creditors' Committee (CoC) of the insolvent Reliance Capital Ltd is scheduled to hold the second round of bidding in that date.
According to a CNBC report, the Torrent Group is expected to file a petition for a stay of the National Corporation Act Court of Appeal (NCLAT) ruling in favor of the Reliance Capital lenders. The company is also likely to make an urgent call based on the second round of auctions which is scheduled for March 20. NCLAT rescinded NCLT's order and allowed the CoC to hold an extended auction. On December 21, 2022, the initial bidding process was closed. Torrent Investments had made the highest offer of $8,640 crores, but Hinduja Group then submitted an offer that was even higher in $8,950 cr.
According to the rules of the extended challenge mechanism, the minimum threshold or the initial value of the offer has been set at $9,500 crore, with the subsequent round increasing to $10,000 crores and for $250 crores in any round that follows. This compares the minimum threshold value of $6,500 crores in the first round which concluded on December 21. According to sources, the creditors' committee (COC) expects to make an increase in $10,000 crores from the extended challenge mechanism.
The expanded challenge mechanism will also have a minimum advance cash payment threshold of $Rs 8,000 crores for bidders, the sources said. To collect approximately $Rs 40,000 crore in unpaid loans, corporate bankruptcy proceedings were launched against Reliance Capital in November 2021.
(With contributions from PTI)
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