Reliance Capital COC Rejects All Bids, Decides Liquidation
IANS 30 November 2022
The committee of creditors (COC) of Reliance Capital (RCAP), in its meeting held on Wednesday, has decided to reject all the binding bids that it received from the bidders on Monday.
 
The COC is now considering sending RCAP to liquidation, under the newly introduced regulation 6(A) of the Insolvency and Bankruptcy Code (IBC), whereby each individual business can be sold separately.
 
According to sources, the decision to reject the bids had been taken as the lenders are of the opinion that the bid value offered by all the bidders is too low.
 
For the financial services business, the Reserve Bank of India (RBI) has special powers under Section 227 of the IBC to refer companies to insolvency for debt resolution. RCAP was the third financial services company that had been referred by RBI for insolvency.
 
The other two are DHFL and SREI.
 
DHFL was sold to Piramal at 50% of its liquidation value, while SREI's resolution process is still in progress.
 
The rejection of the RCAP bids proves that the use of Section 227 by RBI has not worked in favour of lenders of the financial services companies.
 
Notably, RCAP has received five bids under option-1 for the Reliance Capital Core Investment Company (CIC), as the deadline to submit binding bids ended on Monday, 28th November.
 
The option-1 bidders are: Hinduja, Torrent, Oaktree, Cosmea Financial and Piramal consortium, and UAVRCL. Out of these five bidders, UVARCL has bid on a fee basis, which means that it has not submitted any resolution plan for RCAP. It will further sell RCAP assets and make payments to lenders, as and when the sale happens.
 
No separate bids were received for Reliance General Insurance Company (RGIC) and Reliance Nippon Life Insurance Company (RNLIC)
 
Cosmea-Piramal has offered Rs5,231 crore for RCAP, while Hinduja's bid is Rs5,060 crore.
 
The size of Torrent and Oaktree's bid is Rs4,500 crore and Rs4,200 crore, respectively.
 
Out of these four, the Cosmea-Piramal consortium has offered Rs4,250 crore as the upfront payment, while Hinduja offered Rs4,100 crore upfront to the lenders.
 
The upfront payment by Torrent and Oaktree is in the range of Rs1,000 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
BS-IV Vehicle Scam: ED Attaches Properties Worth Rs22 Crore, Ashok Leyland's Role Being Probed
IANS 30 November 2022
The enforcement directorate (ED) on Wednesday said that it has attached properties worth Rs22.10 crore of firms in a case under the Prevention of Money Laundering Act (PMLA) relating to the Bharat Stage-IV (BS-IV) vehicle scam and...
NDTV Takeover: Prannoy Roy, Radhika Roy Resign from Promoter RRPR Holding
Moneylife Digital Team 30 November 2022
In a dramatic late-night development on Tuesday, the new board at New Delhi Television Ltd (NDTV) approved the resignations of Dr Prannoy Roy and Radhika Roy as directors of RRPR Holding Pvt Ltd (RRPR), the promoter of NDTV. It...
Alibaba To Sell Shares Worth US$200mn in Zomato: Report
IANS 30 November 2022
Chinese behemoth Alibaba is set to sell its shares worth US$200mn (million) in Zomato via a block deal on Wednesday, the media reported.
 
According to CNBC Awaaz, citing sources, Ant Financial and Alipay would bring down...
Toyota Kirloskar's vice-chairman Vikram Kirloskar passes away
IANS 30 November 2022
Vikram Shreekant Kirloskar, an eminent industrialist and Vice-Chairman of Toyota Kirloskar Motors passed away after suffering a cardiac arrest late Tuesday. He was 64.
 
His funeral is scheduled for 1 p.m. on Wednesday in...
Free Helpline
Legal Credit
Feedback