Bidding deadline for Reliance Capital extended again, trading of shares stopped
Highlights
- Deadline for resolution process extended till January 31, 2023
- Earlier its deadline was till November 1, 2022.
- Trading is not happening in Reliance Capital since September
national company law The Tribunal (NCLT) has extended the deadline for debt resolution process of debt-ridden Reliance Capital till January 31, 2023. Earlier its deadline was till November 1, 2022. Sources said this is the third extension in the resolution process. Even before this the deadline had been extended twice. On the other hand, trading in the shares of the company has stopped. Reliance Capital has not been trading since September.
Must be resolved within 180 days
As per the rules of the Insolvency and Insolvency Code (IBC), the administrator was originally supposed to complete the resolution process of Reliance Capital Limited (RCL) within 180 days i.e. by June 3, 2022. But failing to do so, the deadline kept getting extended. Earlier, lenders of Reliance Capital had given bidders till October 31 to submit binding bids along with an advance deposit (EMD) of Rs 75 crore. This time the deadline was extended by 30 days but the bidders were not happy with it. Most of them had sought extension of two-four months. Reliance Capital had received 14 non-binding bids for several of its businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for several of its subsidiaries.
Bidders have two options
Bidders have two options. Under the first option, they can submit bids for the entire company, while under the second option they can bid for specific areas of the company. Sources said Torrent, IndusInd Bank, Oaktree, Cosmia Financial, Authum Investments and Be Right Real Estate have submitted bids ranging from Rs 4,000 crore to Rs 4,500 crore for the entire assets of Reliance Capital. Sources said Piramal Finance has made an offer of Rs 3,600 crore for the Reliance General Insurance business, while Zurich Insurance has a bid of Rs 3,700 crore. Another bidder, Advent, has made an offer of Rs 7,000 crore. Jindal Steel & Power and UVARC have submitted bids for Reliance Capital’s ARC business.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
