RCap debt resolution deadline may be extended to February 2023

The deadline for the completion of the Reliance Capital Ltd (RCL) debt resolution process may be extended for an additional 90 days on February 1, 2023, with several bidders requesting more time to submit their bid.

The current deadline ends on November 1, 2022. “The administrator is ready to approach NCLT Mumbai to request a 90-day extension,” a source said. This will be the third extension, as the timeline has been extended twice in the past.

In accordance with the rules of the Insolvency and Bankruptcy Code (IBC), the administrator was initially required to close the RCL resolution within 180 days, no later than June 3. Earlier, Reliance Capital’s lenders had given bidders a 30-day extension to submit binding bids, along with an EMD of ₹75 crore, by October 31. The bidders had requested an extension of 2 to 4 months.

Offers received

Reliance Capital had received 14 non-binding offers for its multiple ventures. Six companies submitted bids for the entire company, while the remaining bidders submitted bids for its multiple subsidiaries.

Torrent, IndusInd, Oaktree, Cosmea Financial, Authum Investment and B Right Real Estate submitted bids ranging from ₹4,000 crore to ₹4,500 crore for all of Reliance Capital’s assets.

For Reliance General Insurance business, Piramal Finance offered ₹3,600 crore, while Zurich Insurance’s offer is ₹3,700 crore. The third bidder, Advent, offered ₹7,000 crore for Reliance General Insurance. According to sources, Piramal and Zurich are now considering a joint bid for Reliance’s general insurance business.

Jindal Steel and Power and UVARC submitted bids for Reliance Capital’s ARC business. For Reliance Capital’s other miscellaneous assets, 3 bidders – Choice Equity, Global Fincap and Grand Bhawan submitted bids.

At the start of Reliance Capital’s resolution process, more than 54 companies had submitted an expression of interest (EOI) for its various assets, of which only 14 are currently in the running.

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John A. Bogar