RCapital lenders meet ends in stalemate over key challenge mechanism issue

CoC decides that all bidders, while submitting their resolution plans, will agree in writing to participate in the Challenge Mechanism in whatever form it is implemented by the lenders later

The Committee of Creditors (CoC) of Reliance Capital failed to resolve a key issue on the challenge mechanism process to the winning bid which is threatening to delay the debt resolution of the company.

The committee of creditors, which met today, recommended the "Black Box" approach, which means that the modalities of the Challenge Mechanism process will be decided by them but will be communicated to the bidders at a later stage.

Under this, bidders will have to submit their resolution plan with no certainty on how this process will work and impact the bidding process after they submit their