Reliance Capital Insolvency: Creditors' Committee Decides To Extend First Round Of Auction
CoC decision will allow all eligible bidders in the first round to participate in the auction.
Reliance Capital Ltd.'s Committee of Creditors has unanimously decided to extend the first round of auction, two people involved in the process told BQ Prime. This is not a fresh or second round, but simply an extension of the first round, as one of the two people emphasised.
As a consequence, all the eligible bidders in the first round will be allowed to participate, including Piramal Capital and Cosmea Financial; Torrent Group; Hinduja Group; and Oaktree Capital.
The CoC will also seek an extension of the month-end deadline to complete the insolvency process. This would be the fourth extension if the insolvency court allows it.
To recap, Ahmedabad-based Torrent Investments had emerged as the highest bidder with an offer of Rs 8,640 crore. Media reports suggesting that the Hinduja Group is seeking to revise its bid from Rs 8,110 to Rs 9,000 crore promoted Torrent to approach the National Company Law Tribunal.
Calling Hinduja Group's revised bid as "non-compliant", Torrent sought a direction from the administrator that only eligible plans be presented to the CoC. The tribunal, on Jan. 4, granted this relief to Torrent and directed the administrator not to place the alleged illegal plan of the Hinduja Group before the CoC.
Earlier, BQ Prime had reported that Torrent intends to oppose a decision by the financial creditors of Reliance Capital to restart the auction of assets under the Insolvency and Bankruptcy Code.
The next hearing before the NCLT will take place on Jan. 12.