Reliance Capital: Creditors To Go For Second Round Of Auction According to PTI, the Committee of Creditors (CoC) will meet on Monday to decide on the second round of auction as it is expecting bids upwards of INR 10,000 crore
By Shrabona Ghosh •
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The insolvency resolution of Anil Ambani-backed Reliance Capital is set to get a new spin as the company's creditors are looking for a second round of 'Challenge Mechanism' or e-auction for the bidders, reported PTI.
Torrent and Hinduja both are in the race for acquiring the company. According to PTI, the Committee of Creditors (CoC) will meet on Monday to decide on the second round of auction as it is expecting bids upwards of INR 10,000 crore from this. "The decision to run a second round of Challenge Mechanism has been taken as the commercial viability of the Torrent and Hinduja bids is not acceptable to the CoC. They also added that the bids submitted by Torrent ( INR 8,640 crore ) and Hinduja Group-backed IndusInd International Holdings Ltd.(IIHL) ( INR 8,110 crore) are below the liquidation value and fair value fixed by the independent valuers," the report added.
Earlier, as part of the resolution process,Torrent Group with an offer of INR 8,640 crore emerged as the highest bidder in the e-auction held for Reliance Capital. In its regulatory filing on January 4th, Reliance Capital revealed that the NCLT Mumbai bench issued an interim order after bids of Torrent Power and Hinduja Group in the first round.
As per an order of the National Company Law Tribunal (NCLT), lenders have to complete the resolution process of Reliance Capital by January 31, 2023. Reliance Capital was sent for debt resolution in November last year under the Insolvency and Bankruptcy Code, 2016.
The Reserve Bank of India (RBI) on November 29, 2021 superseded the board of directors of Reliance Capital Ltd under Section 45 IE of the Reserve Bank of India Act, 1934 and appointed Shri Nageswara Rao Y as its administrator with effect from November 29, 2021.
Reliance Capital Limited (RCL) was incorporated in 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Ltd. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.
