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Reliance Capital’s Committee of Creditors (CoC) is unhappy with the resolution offers received in the company’s bankruptcy proceedings and is now in talks with bidders, sources said certain type of product.
The CoC met on Wednesday, when all offers were presented and discussions were held on how to proceed. The initial valuation is not very optimistic and so the lenders will negotiate with the bidders on how they can improve their offer.
In parallel, due diligence of bidders and compliance with ‘fit and proper’ criteria will be conducted to ensure that only viable bidders can proceed, the source said, adding that a CoC meeting is scheduled for next week.
What next?
If the negotiations are successful, the COC will vote on the best settlement plan, which will be selected. However, if the CoC remains unsatisfied with the plans, it will have to seek alternative options by approaching the NCLT. Lenders will then have 2-3 options, one of which could be to seek a re-bidding process, said another person with knowledge of the matter.
certain type of product had earlier reported that CoC Reliance Capital had received eight binding offers within the November 28 deadline for submission of final bids. This included four bids for Reliance Capital as a whole, from Hinduja Group, US private equity firm Oaktree Capital, Ahmedabad-based Torrent Group and a combined bid from Cosmea Financial and Piramal Group.
In addition, the UV Asset Reconstruction Company has submitted a bid based on consideration for individual assets as a whole under Option-I. Further, Jindal Power, Authum Investment Infrastructure and Choice Equity Broking submitted bids under option-II for individual assets of Reliance Capital.
Published on December 1, 2022
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