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The Reserve Bank of India on 29th November 2021 superseded the board of Reliance Capital in relation to the default in the payment obligation to the RCL's creditors. This occurred after YES Bank had intimated the RBI about the default amount in relation to Secured Non-convertible debentures amounting to Rs. 14,17,80,51,298, default date being 13th September, 2019.
Swiggy, Tata, and Reliance retail to compete for this buyout deal, check out.
The Insolvency resolution process has been initiated against RCL on 06th December 2021. To this, 54 bidders have expressed their interest to buy RCL's stake, either to bid for the whole of RCL's assets or bidding for any of its subsidiaries. RCL has as many as 8 subsidiaries or clusters namely, Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance, and Reliance Commercial Finance.
Mr. Nageswara Rao Y has been appointed by the RBI as the administrator of the RCL's insolvency process.
The Committee of Creditors (COC) has extended the resolution process from 3rd June to 2nd September by applying for a one-time extension of 90 days to the NCLT. The timeline for submission of the resolution plan was till June 20 which also got extended to July 11. As per Insolvency bankruptcy code 2016, the CIRP process has to be completed within 180 days, with availability for a one-time extension of 90 days. However, the maximum time limit to complete the whole process is 330 days.
At a COC meeting held on 16th June 2022, RCL's lenders decided to extend the CIRP process further by 2 months, making the due date to complete the insolvency process to be November 2nd.
With the process coming to closure, only 5 prominent bidders stood up namely, Zurich Insurance, Cholamandalam Group which has opted to takeover RCL's Insurance arm, and Piramal Enterprises; YES Bank, and Torrent Group are the ones who have opted for Option I (the entire assets of RCL).
The recent bidders who opted out of the insolvency process were Tata AIG, ICICI Lombard, Blackstone, HDFC Ergo, etc.
RCL's share opened at Rs 12.3 today morning!
-by Gautam
This news piece is brought to you in association with jobaaj.com
