Torrent stalls Reliance Capital Resolution, COC approves 90 days extension to complete resolution process
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The Committee of Creditors (COC) of Reliance Capital has approved the extension of 90 days (from January 31 to April 30) to complete the Resolution process.
Due to Torrent's legal challenge, the Administrator will file an application for deadline extension in the NCLT Mumbai on Monday, January 16.
NCLT Mumbai will resume hearing in the Reliance Capital resolution matter on Monday.
In the hearing on Thursday, January 12, senior counsel Kapil Sibal appearing for RCAP's COC informed the court that the bid submitted by Torrent is non-compliant.
Sibal said that COC found a discrepancy in the Resolution Plan of Torrent. The financial proposal submitted by the company in the draft resolution proposal does not match the highest bid amount submitted by them in the challenge mechanism.
Sibal said that after the Administrator wrote to Torrent on January 4, and after that Torrent changed its entire bid on January 6.
Sibal said that Torrent does not even meet the threshold of the third round of the Challenge Mechanism. Therefore, it is non-compliant in the third round itself, and could not have participated in the fourth round.
Torrent's bid in the second round was only Rs 7,500 crore, which should be the final bid by the company, while IIHL's (Hinduja) all-cash bid of Rs 8,110 crore in the third round is higher than Torrent's offer of Rs 7,500 crore.
In addition, Hinduja's IIHL is offering additional upfront cash of Rs 900 crore, over and above its bid of Rs 8,110 crore, to the lenders, and this higher realisation can not be denied to the lenders, including LIC and EPFO.
