Reliance Capital’s lenders will begin voting on Friday over the resolution plan submitted by a Hinduja Group company that offers recovery of around Rs 10,000 crore. The voting followed a two-day meeting by the lenders on the issue, reported Economic Times.
Earlier this week, the Hinduja Group’s Indusind International Holdings Ltd (IIHL) submitted a comprehensive plan that was presented to lenders on Friday. Piramal Capital, Oaktree Capital, Torrent Investments and other bidders in the race did not submit their plans within the deadline, the report said.
Administrator Nageswara Rao Y has called the committee of creditors to vote on IIHL’s plan from June 9. If more than 66% of verified creditors vote in favour, the administrator will apply for the approval of IIHL’s plan from the National Company Law Tribunal (NCLT), according to Economic Times.
In addition, the Hinduja Group will seek the Reserve Bank of India’s (RBI’s) approval for the plan. The central bank’s ‘fit and proper’ endorsement is required for acquirers of financial service companies in such bankruptcy resolution processes.
On Thursday, the administrator of Reliance Capital informed stock exchanges that the lenders have decided to put the only plan they received up for e-voting.
In May, the majority of lenders agreed on the equitable distribution of proceeds among assenting and dissenting creditors, a move to discourage negative voting.
Lenders are anticipating a recovery of around Rs 10,090 crore from the sale of Anil Ambani’s financial services company, below the liquidation value fixed at Rs 12,500 - Rs 13,000 crore in claims from lenders.
The Rs 10,090 crore includes a final offer from IIHL for Rs 9,660 crore and a cash amount of Rs 430 crore, which will be distributed among lenders.
According to an Economic Times report, the sale of Reliance Capital will be concluded only after the Supreme Court hears a case filed by Torrent Investments over the auction being extended beyond the original deadline.
