The date of submission of Reliance Capital Resolution Plan has been extended four times in the past as well. The original date of submission was May 26.
The Committee of Creditors (CoC) will meet in the coming week to take stock of the resolution process of Reliance Capital and consider extension of the deadline.
() had initially received 54 Expression of Interest (EoI) but now only 5-6 bidders are active in the due diligence stage.
Due to poor response to Reliance Capital’s resolution exercise, the CoC has also waived the condition of paying Earnest Money (EMD) of Rs 75 crore on the date of first submission.
Besides, sources said, Piramal Group, one of the bidders, is also facing hurdles as insurance regulator IRDAI has expressed concern over the group’s bid. Reliance Nippon Life Insurance,
As per the rules, Piramal, which already has a promoter stake in one life insurance firm, cannot take an equal stake in any other life insurer. Pramerica Life Insurance Limited (PLIL) is promoted by Piramal Group.
According to sources, the CoC and the administrator are more keen to receive bids for Option-1, ie Reliance Capital, as a CIC (core investment company).
Under Option-2, bidders can bid for 8 different businesses/groups of RCL, which include general insurance, life insurance, asset reconstruction and securities business.
reserve Bank of India (RBI) superseded the board of RCL on November 29 last year in view of payment defaults and serious governance issues.
RBI appointed Nageswara Rao Y as Administrator in respect of Corporate Insolvency Resolution Process (CIRP) of the company.
It is the third largest non-banking financial company (NBFC) against which the central bank has recently initiated bankruptcy proceedings under the IBC. the other two were Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).
RBI subsequently filed an application in the Mumbai Bench of the National Company Law Tribunal (NCLT) to initiate CIRP against the company.
In February this year, the RBI-appointed administrator had invited expressions of interest for the sale of Reliance Capital.