NCLT okays common resolution plan for 3 Reliance Group firms

By: |
Published: June 22, 2019 2:42:03 AM

The majority of the committee of creditors across the three companies independently voted to appoint Anish Niranjan Nanavati as RP to replace the existing interim resolution professionals.

The NCLT has directed the RP to submit a progress report on July 23.

The NCLT on Friday approved the appointment of a common resolution professional as part of the corporate insolvency resolution proceedings against Reliance Communications, Reliance Infratel and Reliance Telecom.

According to the proceedings, the majority of the committee of creditors across the three companies independently voted to appoint Anish Niranjan Nanavati as RP to replace the existing interim resolution professionals.

The process preceding the May 3-4 vote on the new RP involved calling for applications. The CoC received 59 applications, of which 23 applicants were asked to submit detailed applications. Of these, 16 responded with detailed presentations on technical capabilities, of which 5 were shortlisted and asked to respond with financial bids before the final RP selection was made.

The selection for a common RP was also supported by the rationale that the three companies have integrated business affairs with significant overlap of lenders among the three.

The NCLT has directed the RP to submit a progress report on July 23.

A pending petition by Doha Bank against Reliance Infratel was not listed for Friday and will be taken up on June 28, the next date of hearing.

Earlier this month, the counsel representing Doha Bank and referring to three other direct lenders as being a ‘syndicate of direct lenders to RITL’, alleged that the IRP’s decision to admit claims of Rs 8,000 crore – based on bankers invoking corporate guarantees issued by Reliance Infratel to help secure loans for Reliance Communications – diluted the voting share of direct lenders to RITL within the CoC.

The counsel has alleged that the direct lenders’ syndicate had lent RITL around Rs 1,400 crore, while State Bank of India’s direct exposure stood at Rs 900 crore and the exposure of operational creditors was at Rs 300 crore.

However, the counsel claimed that the total debt got pushed up with addition of claims based on corporate guarantees, and that also diluted the total voting share of the ‘syndicate’ to 15% from 45%.

The actual admitted claims for RITL, as per documents uploaded on the website, stood at Rs 9,665.07 crore.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop