US-based Oaktree is one of four bidders in the race to become debt-ridden Reliance Capital Sources said the resolution process may end if its demands are not met by the lenders. according to the sources, Oak tree Reliance Capital has sought financial results by December 2022 for conducting the auction process, followed by an extension of four weeks till January 31, 2023.

An email query sent to Oaktree did not elicit any response till the writing of the story.

Sources said that the lenders are not ready to accept this demand of the bidders.

According to National Company Law Tribunal In the NCLT order, the lenders have to complete the resolution process of Reliance Capital by January 31, 2023. Hence the chances of an extension of four weeks are slim, sources said.

According to sources, lenders fear that Oaktree will not participate in the auction process to be held in the week starting December 19.

With Oaktree’s exit, only three bidders will be left in the race for Reliance Capital resolution – the Cosmia-Piramal consortium, Hindujaand torrent group.

Sources said the Committee of Creditors (CoC) is expected to meet on Friday to finalize the auction process and terms for the proposed e-auction.

Sources said that in a meeting held on Tuesday, the lenders discussed two options – closed-cover auction and e-auction. But the biggest lenders EPFO ​​and LICwhich collectively control 35 per cent voting rights, rejected the closed-cover auction and voted in favor of the e-auction.

Under e-auction, lenders have two options, either to go for ascending auction or descending auction.

Sources said foreign banks are pushing for a descending auction. In the descending auction, the base price would be a fair value of Rs 17,000 crore.

In the ascending auction process, which is supported by LIC and EPFO, the base price will be Rs 5,300 crore – the highest bid price quoted by the Cosmia and Piramal consortium.

reserve Bank of India (reserve Bank of India) had breached the board on November 29 last year rcl In view of payment defaults and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator in connection with the Corporate Insolvency Resolution Process (CIRP) of the firm.

Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the IBC.

the other two were Shrei Group NBFC and Dewan Housing Finance Corporation (DHFL). The RBI subsequently filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT) for initiation of CIRP against the company.

In February this year, the RBI-appointed administrator had sought expressions of interest for the sale of Reliance Capital.