INVC NEWS
Mumbai : The National Company Law Tribunal (NCLT) approved the Rs 9,650 crore resolution plan of Hinduja group company IIHL (IndusInd International Holdings Ltd) for Reliance Capital. The Mumbai bench of NCLT approved the plan submitted by IIHL in June 2023 in the second round of bidding for the debt-ridden company.
Detailed orders in this matter are likely to come soon. The Reserve Bank of India (RBI) in November 2021 had removed the board of directors of Reliance Capital over administrative issues and payment defaults by the Anil Dhirubhai Ambani group company. The central bank had appointed Nageswara Rao Y as administrator, inviting bids in February 2022 to acquire the company.
Reliance Capital had a debt of over Rs 40,000 crore and four applicants had initially bid with resolution plans. However, the committee of creditors rejected all four plans for low bid prices and a challenge mechanism was initiated, in which IIHL and Torrent Investments participated. The Hinduja group company was selected by the committee in June last year for an upfront cash bid of Rs 9,661 crore. Reliance Capital’s additional cash balance of Rs 500 crore will also go to lenders.
