RCap bidders seek extension to November 28 deadline | The Financial Express

RCap bidders seek extension to November 28 deadline

Jindal Steel and Power had bid for RCap’s asset reconstruction business.

RCap bidders seek extension to November 28 deadline
The deadline, if extended again, would lead to further delays in the whole process, sources added.

A number of bidders of debt-laden Reliance Capital, including a consortium led by Piramal Enterprises, have sought an extension to the November 28 deadline to submit binding bids for the former Anil Ambani group company.

The bidders — others being Oaktree Capital, Torrent Group and Zurich Insurance — have written separate letters to the administrator of the insolvency process, seeking more time to finalise their resolution plans. While Piramal and Zurich want the deadline to be extended to December 16, Oaktree and Torrent want it to be moved to December 23, sources close to the development said.

However, the administrator is unlikely to grant the requests as they come barely a week before the expiry of the deadline. The deadline, if extended again, would lead to further delays in the whole process, sources added.

Both Oaktree and Torrent had submitted non-binding bids for RCapital under Option 1, where they have bid for RCap as a core investment company (CIC), while Piramal and Zurich want to take over its general insurance business.

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As of August, RCap administrator had received six non-binding bids under Option-1, with Torrent, IndusInd Bank, Oaktree Capital, Cosmea Financial, Authum Investment, and B Right Real Estate submitting bids. The bids were placed in the range of Rs 4,000-4,500 crore.

For Reliance General Insurance business, Piramal Finance had placed a bid of Rs 4,000 crore, Zurich Insurance of Rs 3,500 crore and US-based private equity investor Advent International had bid Rs 7,000 crore. Jindal Steel and Power had bid for RCap’s asset reconstruction business.

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First published on: 24-11-2022 at 05:15 IST