IIHL Gets Extension to Complete Reliance Capital Resolution Plan

Mumbai, Jul 23 (PTI) The National Company Law Tribunal on Tuesday gave an extension to Hinduja Group-owned IndusInd International Holdings (IIHL) till August 10 to complete the formalities to implement the resolution plan for bankrupt Reliance Capital.

The tribunal, headed by Justice Virendrasingh G Bist and Prabhat Kumar, directed IIHL to submit the equity amount into the escrow account by August 31.

The NCLT Mumbai bench further directed that whatever cash is there during the extended period will go to the Committee of Creditors (CoC).

In an order on May 26, the tribunal approved IIHL's application for an extension of the May 27 deadline for paying Rs 8,000 crore to acquire Reliance Capital.

The group had cited pending regulatory approvals and compliance requirements as reasons for the extension.

On June 29, 2023, the lenders to the crippled Reliance Capital accepted the revised Rs 9,661-crore bid put forth by IIHL.

IIHL made the highest cash offer of Rs 9,661-crore in the auctions and secured as much as 99 per cent of the lender's votes.

The bid also included the Rs 500-crore cash balance with Reliance Capital going to the lenders, taking the overall recovery to Rs 10,200 crore or about 65 per cent as against Rs 16,000 crore principal secured debt the crippled company owed to lenders.

Meanwhile, a lawsuit challenging the second e-auction filed by Torrent Group is pending before the Supreme Court and needs to be concluded.