The administrator of Reliance Capital (RCap) has filed an application seeking a 90-day extension for the completion of the debt-laden firm’s insolvency process. The present deadline to conclude the process ends on January 31.
In its petition filed before the National Company Law Tribunal’s (NCLT) Mumbai bench, the administrator has sought time till May 1 to complete the Corporate Insolvency Resolution Process (CIRP).
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Stating that the time lost due to the legal issues and other processes, which were not due to the corporate debtor’s (RCap) fault, the tribunal should “exercise its discretion and grant time for completion of the CIRP beyond the 330-day period”, the application filed on Wednesday stated.
A lot of time was spent in obtaining clarification or vacation orders in relation to several interim orders, pursuing pending disputes before the tribunal relating to possession of Reliance General Insurance Company’s shares and finalising & approving of resolution plans. Further, there is also an interim stay by the tribunal to the proposed second challenge mechanism.
The bankruptcy proceedings of RCap were to end on June 4, 2022, but was extended to September 2, 2022, following the tribunal’s order. It was further extended to November 1, 2022, and later to January 31, 2023.
On January 6, RCap’s Committee of Creditors (CoC) had approved a resolution to seek extension for completion of the CIRP with 98.09% of their total votes, as it would be difficult to wrap up the proceedings by January 31.
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It had also authorised the administrator to seek NCLT’s approval for the 90-day extension. Some of the bidders were not happy with the multiple extensions of the timeline, as these were delaying the process.
On Monday, the bankruptcy tribunal had directed to put a hold on all proceedings of RCap’s insolvency process, till its final orders are pronounced.
KPMG is the advisor to the CoC, while Nageswara Rao Y of Deloitte is the process advisor to RCap’s administrator. The creditors of RCap are seeking Rs 23,666 crore in dues. Earlier on November 29, 2021, the Reserve Bank of India superseded RCap’s board following payment defaults and governance issues, and appointed Nageswara Rao Y as the administrator for the bankruptcy process.