The Resolution Plan submitted by the Hinduja Group for the insolvency process of Reliance Capital has been filed by the administrator to the National Company Law Tribunal (NCLT) for approval. The filing was done electronically on Wednesday, with physical filing scheduled for Thursday, according to a regulatory update by Reliance Capital (RCap).
The resolution plan had earlier received approval from the Committee of Creditors (CoC) of RCap. Once approved by the NCLT, the administrator will seek further approvals from regulatory bodies, including the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority, the Competition Commission of India, and the Securities and Exchange Board of India.
However, the final approval is contingent upon a Supreme Court order in response to a petition filed by the Torrent Group. The Supreme Court is set to hear the matter in August. The Hinduja Group's resolution plan garnered support from the lenders, with 99.6% of their total votes in favour. Under the plan, the lenders expected to recover an upfront cash amount of Rs 9,661 crore from IndusInd International Holdings (IIHL), the company representing the Hinduja Group's bids.
The deadline to file the resolution plan with NCLT is July 15, and if not extended further, the resolution process is expected to take approximately 595 days, which exceeds the statutory time limit of 330 days.
Earlier reports indicated that the Hinduja Group was in discussions with multiple lenders to secure up to Rs 8,000 crore to fund its proposed takeover of Reliance Capital. Commitment letters had been received from financial institutions such as JP Morgan, Standard Chartered Bank, Barclays, Apollo Global Management, Varde Partners, and Farallon Capital.
IndusInd International Holdings plans to finance the Rs 10,000 crore acquisition through a combination of debt and equity, with a debt-equity ratio of 80:20, as per sources familiar with the matter. The outcome of the resolution process will have significant implications for Reliance Capital's debt restructuring and the overall financial landscape.
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