Page 4 - Reliance Capital

The spirit of the law

Post-auction bids will delay insolvency resolution

Lenders to meet on Tuesday to discuss bids for Reliance Capital acquisition

The Committee of Creditors (CoC) of debt-ridden Reliance Capital Ltd is scheduled to meet on Tuesday to discuss bids submitted by Torrent Group and Hinduja Group as part of the insolvency resolution process. Ahmedabad-based Torrent Group submitted a bid of Rs 8,640 crore for acquiring the NBFC firm set up by the Anil Ambani Group, sources said. If successful, it will mark the entry of Torrent Group into financial services space. In an e-auction conducted under the Challenge Mechanism, Torrent had presented a resolution plan for Reliance Capital Ltd (RCL) with a net present value of Rs 8,640 crore, while Hinduja's offer was Rs 8,110 crore. The CoC fixed a floor value of Rs 6,500 crore for the auction held on December 21. After the e-auction was over, sources said, Hinduja presented a revised resolution plan with a bid of Rs 9,000 crore and it offered 100 per cent cash upfront. On the other hand, sources said, Torrent Group offered only Rs 3,750 crore as upfront cash, which is 54 p

Torrent escalates Reliance Capital bid war against Hinduja to RBI

The Committee of Creditors will meet on January 3 to take a view on the new twist in the case

Torrent wins race to acquire RCap with Rs 8,640 crore offer to lenders

The Hinduja group also participated in today's auction but lost the race with a Rs 500 crore lower offer

Cosmea-Piramal consortium pulls out of Reliance Capital's bidding

With the exit of Cosmea-Piramal, there are now only three players left in the race -- Hinduja, Torrent, and Oaktree

CoC raises base price of Reliance Capital auction to Rs 6,500 crore

Auction to be held on two days, starting December 22

RCap assets' e-auction to kick off on Dec 19; base bid at Rs 5,300 crore

This is the first time that an e-auction of this scale would take place for a debt resolution under the Insolvency and Bankruptcy Code, 2016

Eye on maximum value, lenders say no to Reliance Capital liquidation

"Lenders will decide on the further course of action, including the stance for negotiations on Friday," the source said

Arena-Varde Partners, NARCL and Authum submit final bids for Srei companies

Srei Infrastructure Finance and Srei Equipment Finance were admitted for bankruptcy following applications filed by the Reserve Bank of India in October 2021

Top Headlines: One licence for insurance biz, amendment in IBC, and more

Here is our morning brief of today's top headlines

Hinduja group, Torrent, Piramal, Oaktree, bid for Reliance Capital

No takers for life and general insurance businesses of the bankrupt company, say sources

Piramal, Zurich Insurance may bid separately for Reliance General Insurance

Piramal, Zurich Insurance may bid separately for Reliance General Insurance

LIC's move to sell Reliance Capital's debt to ARC upsets lenders, bidders

Days ahead of the deadline to submit binding bids, LIC's move to sell its Rs 3,400 crore secured principal debt of cash-strapped Reliance Capital Ltd (RCL) to an asset reconstruction company (ARC) has irked its lenders and bidders. The last date for submitting binding bids for Reliance Capital Ltd (RCL) and its subsidiaries is November 28. LIC is conducting a Swiss Challenge process to invite bids from Asset Reconstruction Companies (ARCs) to sell its exposure in RCL, sources said, adding prospective bidders will be asked to better the offer. However, the sources said, Asset Care and Reconstruction Enterprise will have the first right to match the counteroffer. The last date to submit the bids is November 25, while the deadline for submission of binding bids for RCL is November 28. According to the sources, the Committee of Creditors (CoC) of RCL are upset as to why LIC has initiated a parallel process to sell its debt so close to the bids submission deadline. LIC is a member of

LIC's sale of RCAP debt of Rs 3,400 cr to ACRE upsets lenders, bidders

LIC is conducting a Swiss Challenge process to invite bids (EOIs) from Asset Reconstruction Companies (ARCs) to sell its exposure in the Reliance Capital

Auditor flags Rs 13,110 cr of fraud deals in Srei Equipment Finance

Sum includes transactions amounting to Rs 1,283 cr determined as undervalued; Srei Equipment Finance is currently undergoing corporate insolvency resolution process

Nippon Life-Birla Sun Life merger talks fail ahead of RCap deal deadline

Sources say Nippon Life of Japan not keen on diluting its holding in Reliance Nippon Life Insurance Company to less than 10%--something that the merger will bring about

RCap swings to black with Q2 net of Rs 215 cr, income grows to Rs 6,046 cr

Reliance Capital (RCap), which is undergoing insolvency process, on Friday swung back to the black and posted a consolidated net profit of Rs 215.23 crore for the quarter ended September 2022. The non-banking finance company had posted a consolidated net loss of Rs 1,115.56 crore in the year ago quarter ended September 2021. Also, there was a net loss of Rs 491.40 crore in the preceding quarter ended June 2022. The profit before tax stood at Rs 289.74 crore for the reported quarter, while there was a loss before tax of Rs 1,114.52 crore in the year-ago quarter. However, for the half year from April-September period of the current fiscal, the debt-ridden company remained in the red with net loss of Rs 276.17 crore. But the loss was trimmed against Rs 2,161.80 crore registered in the first half of 2021-22. The company had posted a net loss of Rs 8,054.74 crore in fiscal ended March 2022. The company's total income during July-September quarter of this fiscal year grew to Rs 6,046.65

Reliance Capital CoC remain divided on 'Challenge Mechanism' process

Notably, KPMG, who is the COC advisor, and Luthra & Luthra, who is the legal advisor to the COC had proposed multiple options on the Challenge Mechanism

Reliance Capital lenders to meet on Friday to decide on Challenge Mechanism

Lenders of debt-ridden Reliance Capital Ltd (RCL) will meet on Friday to decide on the newly introduced 'Challenge Mechanism' clause in the resolution process, sources said. The 'Challenge Mechanism' gives lenders the power to oppose any resolution plan as and when they want. Some bidders have raised concerns with the Administrator about the introduction of this new clause at this late stage of the bidding process, sources said, adding there was no mention of this mechanism in the Request for Resolution Plan (RFRP) document. These bidders have argued that there was no such clause in the bidding process of DHFL, which was the largest resolution done through NCLT in the financial services sector, for over Rs 95,000 crore worth of debt, the sources added. The last date for submitting binding bids for Reliance Capital Ltd (RCL) and its subsidiaries is November 28. RCL had offered two options to all the bidders. Under the first option, companies could bid for Reliance Capital Ltd, ...

Reliance Cap bidders raise issues with Rs 20,000 cr financial implication

Suitors of debt-ridden Reliance Capital Ltd (RCL) have flagged off various legal issues with cumulative financial implication of Rs 20,000 crore to the lenders and administrator as the deadline for submission for binding bid is approaching. The last date for submitting binding bids for Reliance Capital and its subsidiaries is November 28. Bidders -- including Hinduja, Torrent, Zurich, and Piramal -- have raised concerns, asking the administrator for early resolution of these liabilities, sources said. The bidders are likely to make a condition precedent of these issues to any payment to the lenders, they added. The two main issues flagged off by the bidders are the impending resolution of Reliance Home Finance Ltd (RHFL) and the legal battle between the administrator and IDBI Trusteeship for the control of Reliance General Insurance's shares, which is pending in the National Company Law Tribunal (NCLT), the sources said. Authum Investment and Infrastructure Ltd had been selected a