Lenders of Reliance Capital fix Apr 26 as new date for second auction

Lenders of debt-ridden Reliance Capital (RCap) have fixed April 26 as the new date for the second auction.

As per the earlier schedule, it was to be held on April 11.
 

The decision for the new date of April 26 was taken in the Committee of Creditors meeting held on Tuesday, sources said.
 

According to the sources, the bidders who have confirmed their participation in the second round of auction are IndusInd International Holdings Ltd (IIHL) of Hinduja Group, Torrent Investment and Singapore-based Oaktree.
 

The major concern of the bidders is the compliance of the resolution plan with the Insolvency and Bankruptcy Code (IBC) and Request for Resolution Plan (RFRP) guidelines. In the first round of the auction, the Hinduja Group firm submitted the bid post-auction date.
 

This post-auction bidding is being contested by Torrent Investment in the Supreme Court as it was the highest bidder.
 

The Committee of Creditors (CoC) also has to incorporate the Supreme Court order in the Challenge Mechanism, the sources added.
 

Meanwhile, the Administrator has also moved the National Company Law Tribunal (NCLT) for the extension of the deadline for completion of the resolution process to May 30.
 

The deadline to complete the resolution process of Reliance Capital has been extended multiple times in the past.
 

The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.
 

The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.
 

Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).
 

The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
 

The central bank subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the National Company Law Tribunal.
 

In February last year, the RBI-appointed administrator invited expressions of interest for the sale of Reliance Capital.