Reliance Capital’s (RCap) lenders and administrator approved extending the deadline to complete the resolution process of the debt-laden firm by another 90 days, as it would be difficult to wrap up the proceedings by January 31.
The lenders, who need the National Company Law Tribunal’s (NCLT) approval for the extension, intend to file an application before the tribunal on Monday. If approved, April 30 would be the new date for completion of the resolution process, sources close to the development said.
“The present deadline of January 31 set by the bankruptcy court is “too short”, considering the ongoing litigations that involve the committee of creditors (CoC), resolution applicants and the administrator to the insolvency process. The initial idea was to seek an extension till February 15, however, this too would be a short date,” one of the sources added.
This comes ahead of the January 19 date set by the CoC to hold the second round of challenge mechanism, targeting more than ₹10,000 crore of proceeds from the insolvency process. Following the second round, the administrator has to finalise the winner based on the overall matrix of the bidding (highest bidder, plans under the resolution process, among others), and submit it before the tribunal.
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Earlier, Torrent Group, a bidder for the entire assets of the former Anil Ambani group firm, had won a stay from the tribunal, which had directed the administrator not to declare the winner till further orders. The case is coming up for hearing again on January 16 (Monday).
Torrent Investments, a group company through which Gujarat-based Torrent Group is bidding for RCap, had moved the tribunal stating the lenders decision to conduct another round of challenge process as illegal.