The completion deadline for Reliance Capital resolution process is to be extended by 90 days to February 1, 2023. The current deadline ends on November 1.
Mumbai, Oct 5,2022: The completion deadline for Reliance Capital resolution process is to be extended by 90 days to February 1, 2023. The current deadline ends on November 1.
The administrator is all set to approach NCLT Mumbai to seek 90 days’ extension. This will be the third extension, as the timeline has been extended twice in the past.
As per the Insolvency and Bankruptcy Code (IBC) rules, the administrator had to originally close the resolution of Reliance Capital within 180 days — by June 3.
Earlier, the lenders of Reliance Capital had given an extension of 30 days to the bidders for submission of binding bids, along with an EMD of Rs 75 crore, by October 31.
The bidders were not happy with this 30 days’ extension as most of them had sought extension by 2-4 months.
Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while rest of the bidders had submitted bids for its multiple subsidiaries.
Torrent, IndusInd, Oaktree, Cosmea Financial, Authum Investment, and B Right Real Estate have submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for Reliance Capital’s entire assets.
For Reliance General Insurance business, Piramal Finance has bid Rs 3,600 crore, while Zurich Insurance’s bid is Rs 3,700 crore. The third bidder, i.e., Advent, has bid Rs 7,000 crore for Reliance General Insurance.
According to sources, Piramal and Zurich are now considering a joint bid for Reliance’s general insurance business.
As per the actuarial valuation, Reliance General Insurance is valued at Rs 9,450 crore.
Jindal Steel and Power and UVARC have submitted bids for Reliance Capital’s ARC business.
For other assorted assets of Reliance Capital, three bidders – Choice Equity, Global Fincap and Grand Bhawan – have submitted bids.
At the beginning of the resolution process of Reliance Capital, over 54 companies had submitted Expression of Interest (EOI) for its various assets, out of which only 14 are now in the fray.