The Mumbai bench of National Company Law Tribunal (NCLT) has asked all parties, including committee of creditors (CoC), administrator and Hinduja Group backed-IndusInd International Holdings Ltd (IIHL) to complete the resolution plan for Reliance Capital (RCAP) by March 12, sources told businessline.
“All parties including CoC, administrator and IIHL have agreed in today’s NCLT hearing to complete the transaction by March 12,” a source said. Earlier reports had said IIHL will acquire Reliance Capital by February 26.
RCAP resolution
IIHL had won the auction to acquire debt-ridden RCAP in April 2023 for ₹9,861 crore. Till date, it has deposited ₹5,750 crore, or around 60 per cent of the total amount in escrow accounts, including the equity portion. According to sources, IIHL’s lenders have agreed to provide remaining 40 per cent funds required to complete the payment of total ₹9,861 crore.
Further, today IIHL stated before the NCLT bench that the company is voluntarily offering to release the equity capital of ₹2,750 crore into the escrow account of RCAP, according to a statement.
Court hearing
“Today at the NCLT hearing, to demonstrate its seriousness to complete the transaction, it was IIHL that voluntarily offered to release the equity capital of ₹2,500 crore + ₹250 crore into the account of RCAP,” an IIHL spokesperson said.
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“The Court accepted IIHL’s offer to effect this transfer. The next date of hearing is the 12th of March, to enable Monitoring Committee, CoC and IIHL to complete all procedural aspects,” the spokesperson said.
Since the last hearing of RCAP resolution on February 10, seven meetings of the monitoring committee have been held on various steps of implementation of the approved resolution plan.
The global escrow agreement is almost finalised between the CoC, Administrator and IIHL, and should be closed shortly, sources say. Accordingly, the parties mutually requested for a period of another 10-12 days to complete the implementation of the steps and report back to tribunal.