Reliance Capital (RCap) lenders have urged the Hinduja Group to make the cash payment of Rs 9,650 crore at the earliest and complete the resolution process by May 27, the deadline to complete the resolution process.
The lenders had met officials of the IndusInd International Holdings’ (IIHL) – the firm through which the Hinduja Group had placed its bids for RCap — on Friday and had sought that the plan under the National Company Law Tribunal (NCLT) regulations be implemented.
Representatives of the five-member Committee of Creditors (CoC) — Vistra ITCL (India), IDBI Trusteeship Services, Asset Care & Reconstruction Enterprise, IndusInd Bank and Mazson Builders and Developers — were present at the meeting, sources said.
Vistra has seven representatives – Life Insurance Corporation of India, Employee Provident Fund Organisation, Yes Bank, Deutsche Bank, Broadpeak Investment Advisors, Investment Opportunities V and Trust Capital Group – on the CoC.
IIHL is yet to get approvals from the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), which is necessary for completion of the resolution process.
In June 2023, RCap lenders approved the resolution plan submitted by Mauritius-registered IIHL with a whopping 99.6% of the total votes polled in the latter’s favour.
As per the resolution plan, which was approved by the NCLT, the entire share capital of RCap is proposed to be cancelled and extinguished for nil consideration. Following this, only IIHL and its nominees would the shareholders, RCap had said in an earlier regulatory update.
As part of the turnaround plan, IIHL intends to continue and further grow the major businesses of RCap on a “going concern basis”. IIHL will also reimburse Rs 200 crore infused by the CoC in RCap’s subsidiary Reliance General Insurance Company.
