Debt-laden Reliance Capital’s (RCap) insolvency proceedings are likely to be delayed further, with the prospective buyers now seeking additional time for submission of the binding bids. The bidders are seeking an extension to the September 29 deadline as they are yet to complete the due diligence processes.
The consortium led by Piramal Enterprises has sought an extension of 12 weeks, while Advent International wants a 16-week extension till January 30, 2023, according to sources close to the development.
IndusInd Bank has sought a 10-week extension, while Oaktree Capital has for 12 weeks and Zurich has requested for an eight-week extension, they added.
The committee of creditors (CoC), who are set to meet next week, is also of the opinion that an extension should be granted as it would also help in getting maximum binding bids for RCap assets. Further, this would also help in maximising value to lenders.
As per the current timeline, the last date to submit binding bids is September 29, along with an Earnest Money Deposit (EMD) of Rs 75 crore. The timeline for filing of final resolution plan with the National Company Law Tribunal’s (NCLT) Mumbai bench is November 1.
In August, debt-laden RCap’s insolvency proceedings received six bids under Option-I, which was for the entire assets of the company. Torrent Group, IndusInd Bank, Oaktree Capital, Cosmea Financial, Authum Investment and B Right Real Estate had submitted bids in the range of Rs 4,000-4,500 crore.
Nearly five companies were in the fray under option-2, where they could bid for eight different businesses or clusters of RCap that included general insurance, life insurance and securities business, among others.
Piramal Finance has placed a bid of Rs 4,000 crore for RCap’s general insurance business, while Zurich Insurance placed a bid of Rs 3,500 crore and Advent International was the highest with a Rs 7,000-crore bid. The bidding process had ended on August 29.
Advent International, Zurich Insurance, and a consortium led by Piramal Enterprises had placed bids for Reliance General Insurance, while Jindal Steel & Power and New Delhi-based UV Asset Reconstruction Company submitted bids for its Asset Reconstruction Company business. However, there were no bidders for Reliance Nippon Life Insurance.
RCap’s clusters that were put under the option-2 included Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Asset Reconstruction Company, Reliance Securities, Reliance Commercial Finance, and Reliance Home Finance.
There were three bidders for the assorted assets — Choice Equity, Global Fincap and Grand Bhawan — of RCap.
RCap is currently undergoing insolvency proceedings, with the creditors of the company seeking Rs 23,666 crore in dues.