New Delhi, Dec 31 (IANS) Torrent Investments has escalated the legal war over Reliance Capital's offer to the Reserve Bank of India (RBI) by asking it to issue instructions to the manager.
The Creditors Committee will meet on January 3 to give an opinion on the new turn of the case.
In a new letter to RBI Deputy Governor M. Rajeshwar Rao dated December 28, Torrent Investments sought directions to Nageswara Rao Y, the manager of Reliance Capital.
The letter said that the challenge process was concluded on December 21 with the administrator's email to Torrent Investments confirming its NPV offer of Rs 8640 crore as the highest offer.
However, Torrent Investments was informed that a competing resolution seeker, Hinduja Group, had submitted a revised report late.
financial proposal on December 22 after completing the challenge process on December 21 and after learning that Torrent Investments had emerged as the highest bidder.
According to earlier press reports, Hinduja's offer of Rs 9 000 crore cash upfront beats Torrent's offer of just Rs 4 00 crore in cash with the balance to be paid to lenders in three equal installments in 3/4 year /5 with zero interest.
The goal of the IBC Code is to maximize value to creditors. As such, Hinduja's offering is better for execution compared to Torrent as it does not have a requirement to share security as the CoC will care about any current security dilution.
In repeated Supreme Court rulings, it has been held that value maximization is a key factor in the CoC's approval of any plan.
The only resolution made for a financial services company under the special powers of RBI Section 227 was DHFL, which was won by Piramal Group.
In that case, Adani Group, which was not even a resolution applicant, was admitted by CoC as it offered the highest value to Piramal's offer.
--IANOS
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