Deadline To Submit Reliance Capital Resolution Plans May Be Extended

Lenders to Reliance Capital may extend the last date for submission of bids for acquiring the debt-ridden financial services company till August 10 after key bidders made such a request, sources said.

This will be the second extension in the deadline for submission of the resolution plan for Reliance Capital.

Previously, the Committee of Creditors (CoC) had extended the bid deadline from May 26 to June 20.

Piramal Enterprises has written to the administrator to extend the deadline to August 10, sources aware of the matter said.

Another bidder IndusInd Bank has also sought more time for resolution plan submission. It is understood that it has also written to the administrator of Reliance Capital (RCap) to extend the date to July 15.

The CoC, they said, in all likelihood is expected to extend the deadline to August 10.

According to sources, as of now, there are only three bidders who are actively engaged with the CoC for RCap's resolution. These are Piramal, Yes Bank and IndusInd Bank.
RCap had initially received 54 expressions of interest (EOIs) from different companies for its multiple assets.

Out of the 54 Prospective Resolution Applicants (PRAs) who had submitted EoI's for RCap's assets, 45 had not engaged with the CoC at all, sources said.

The Reserve Bank of India (RBI) had on November 29 last year superseded the board of Reliance Capital Ltd in view of payment defaults and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company.

This is the third large Non-Banking Financial Company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently. The other two were Srei Group and Dewan Housing Finance Corporation (DHFL).