The Committee of Creditors (CoC) of debt-laden Reliance Capital (RCap) has extended the deadline to submit binding bids to November 20, following a request by lenders who had sought more time to complete the due diligence.
This is a 20-day extension to the current deadline of October 31.
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Following the extension, the voting to select the final bidders will take place in December. The CoC approved the extension to the deadline at its meeting held on Thursday, sources close to the development said.
The move also comes after the Mumbai bench of the National Company Law Tribunal (NCLT) extended the cut-off date to complete the resolution process to January 31, 2023, from the earlier November 1.
This is the third time the deadline to complete the resolution process has been extended from the initial June 3 deadline. As per the Insolvency and Bankruptcy Code (IBC), the process has to be closed within 180 days.
RCap had received 14 non-binding bids for its multiple businesses, with six firms evincing interest for the entire company, and remaining for its multiple subsidiaries.
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Torrent Group, IndusInd Bank, Oaktree Capital, Cosmea Financial, Authum Investment and B Right Real Estate submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for RCap’s entire assets. Piramal Finance has bid for Rs 3,600 crore for Reliance General Insurance business, while Zurich Insurance’s bid stood for Rs 3,700 crore and Advent International had bid Rs 7,000 crore for Reliance General Insurance. Jindal Steel and Power and UVARC have submitted bids for RCap’s ARC business. For other assorted assets of RCap, three bidders – Choice Equity, Global Fincap and Grand Bhawan – had submitted the bids.
