Hinduja Group-promoted IndusInd International Holdings (IIHL) on Tuesday filed an intervention application before the Mumbai bench of the National Company Law Tribunal (NCLT), saying while it is ready to pay Rs 2,750 crore as an initial capital to acquire bankrupt Reliance capital (RCap), certain requirements that are part of the resolution plan and were approved by the RCap lenders are yet to be fulfilled, sources said.
These requirements include finalisation and appointment of the trustee for carving out assets that are excluded from RCap, detailed list of creditors and their distribution break-up, record date for delisting of equity shares and non-convertible debentures (NCDs) of RCap and application for delisting of equity shares and NCDs of RCap. Further, formalities for reduction of the share capital of RCap, agreement for creation of an escrow account, settling the outstanding issue of the GST are some other unfulfilled requirements.
A senior official of IIHL, in a letter on Tuesday, communicated the same to the administrator of RCap, Nageswara Rao Y. “There are multiple action points that need to be completed before the final transfer date can be achieved… please let us know the preparatory steps required to be taken along with the time frame that you contemplate for those action items,” the letter said. FE has seen the intervention application filed by IIHL with the NCLT and the letter by IIHL official to the RCap administrator.
The official requested formation of a small committee comprising representatives of CoC and IIHL and the administrator. The panel can work on the ground to get the necessary steps implemented, including seeking modifications from the NCLT. The NCLT on July 23 gave an extension to IIHL till August 10 to complete the formalities to implement the resolution plan, PTI has reported.
The tribunal has directed IIHL to deposit the equity component of Rs 2,750 crore in the escrow account by July 31. IIHL proposes to fund the acquisition through Rs 7,300 crore of borrowing and Rs 2,750 crore through equity.
IIHL had deposited Rs 500 crore as initial commitment to acquire RCap when it was emerged as the highest bidder. The company has requested the NCLT to direct the Rcap administrator and the CoC to refrain from taking any coercive actions including invocation of bank guarantee which would “jeopardise the implementation of the resolution plan.”
The Reserve Bank of India in November 2021 had superseded the board of RCap because of governance issues and payment defaults. The administrator has admitted Rs 25,345 crore of claims from lenders, LIC, EPFO and other superannuation funds.
