Lenders have pushed out the deadline for the resolution of Reliance Capital by two months, to November.

Lenders of debt-ridden On Sunday, Reliance Capital Ltd NSE 1.22 percent (RCL) made the decision to push out the deadline for the resolution process by another two months, to November 2. This was done since there has been a lacklustre reaction from potential buyers for the company’s acquisition. The deadline has already been pushed back once by a total of 90 days, moving it from June 3 to September 2 in the year 2022. This is the second extension that has been granted for the completion of RCL’s resolution procedure by the Committee of Creditors, also known as the CoC.

According to the guidelines outlined in the Insolvency and Bankruptcy Code (IBC), the administrator was required to complete the resolution of RCL within the allotted time frame of 180 days, which was on June 3.

In addition, the CoC agreed to push back the deadline for prospective bidders to submit their resolution plans from June 20 to July 11. This new deadline will be in effect until further notice.
According to the sources, the deadline for the submission of the resolution plan has been extended as a result of a small number of prospective bidders writing to the administrator requesting additional time for the submission.

According to the sources, Piramal Enterprise had sought that the deadline be moved up to the date of August 10, while IndusInd Bank NSE 2.75 percent had requested that the timetable be moved up to the date of July 15.

The sources claim that the deadlines for completing the resolution process and submitting the resolution plan have been extended since the bidders have not shown much interest in the opportunity.

According to the sources, out of the approximately 54 expressions of interest (EoI) that were initially submitted, just a few of bidders are now working with the administrator. Additionally, lenders have offered bidders two choices to choose from.

In the first scenario, prospective buyers were given the opportunity to purchase RCL together with all eight of its subsidiaries. This choice has been made by Piramal Enterprises (NSE 1.39 percent), Yes Bank (NSE 2.41 percent), and Torrent Group.

Under the second alternative, potential bidders have the opportunity to provide resolution options for even a single subsidiary. Zurich Insurance has expressed interest in the general insurance cluster, and Cholamandalam NSE 1.78 percent Group has expressed interest in RCL’s Life Insurance branch.

The board of directors of Reliance Capital NSE 1.22 Percent Ltd (RCL) was replaced on November 29 of the previous year by the Reserve Bank of India (RBI). This was done because of payment failures and major governance difficulties.

In connection with the company’s Corporate Insolvency Resolution Process (CIRP), the Reserve Bank of India (RBI) nominated Nageswara Rao Y to the position of administrator.

This is the third significant non-banking financial firm (NBFC) that the central bank has filed for bankruptcy against under the Insolvency and Bankruptcy Code (IBC) in recent months. Srei Group NBFC and Dewan Housing Finance Corporation were the two that came in second (DHFL).

The Reserve Bank of India subsequently submitted an application to the Mumbai bench of the National Firm Law Tribunal in order to initiate CIRP proceedings against the company (NCLT).

In February of this year, the administrator that had been appointed by the RBI to handle the sale of Reliance Capital asked for expressions of interest (EoIs).

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