has made a fresh attempt to sell its holding of Rs 3,400 crore secured bonds issued by Reliance Capital, the finance company is currently undergoing insolvency proceedings, said two people aware of the development. Capital Markets, the insurance company’s process advisor for the sale of bonds, has invited binding bids from asset reconstruction companies by the evening of September 5, the people said. This is the third attempt by the country’s largest life insurance company to sell its capital loans. did not respond to ET’s request for comment till press time on Monday.

Last June, as reported by ET, LIC invited offers for its Reliance Capital exposure by July 11. Three ARCs, including Ares SSG-backed Asset Care and Reconstruction Enterprise (ACRE), submitted firm bids. However, LIC did not respond to the offers it received, the people said.

In July 2021, it invited offers for 16 accounts, including Reliance Capital Bonds, amounting to Rs 8,091 crore, but failed to close any deals due to pricing differences.

A third person with knowledge of the matter said, “LIC is expecting a recovery of 45%, which is unrealistically high.” The last two trades for a Reliance Capital loan between two lenders and an ARC indicate that the recovery could be around 27-28%.

and Ltd. had separately sold its Reliance Capital exposure in the last fiscal to ACRE for 27-28 paise at Rs, as reported by ET on December 1.

Reliance Capital’s administrator Nageswara Rao Y has accepted claims of Rs 23,666 crore from financial creditors and extended the deadline for submission of firm resolution plan to August 29.

As per the disclosures on the company’s website, LIC has the highest accepted claim of Rs 3,485 crore, followed by LIC pension and group plan with a separate claim of Rs 1,539 crore.

Since Reliance Capital has more than 20 finance-related subsidiaries, the administrator has provided two options. An applicant can bid for the entire company or any of its eight groups of assets. These groups include Reliance General Insurance, Reliance Nippon Life InsuranceReliance ARC,

and Reliance Commercial Finance.