Hinduja Group-owned IndusInd International Holdings (IIHL) now has 18 more days to complete the formalities to implement the resolution plan for the bankrupt Reliance Capital of Anil Ambani, brother of Mukesh Ambani. The National Company Law Tribunal (NCLT) has given an extension to IIHL till August 10. However, the tribunal, headed by Justice Virendrasingh G Bist and Prabhat Kumar, directed IIHL to deposit the equity component of Rs 2,750 crore in the escrow account by July 31.
IIHL proposes to fund the resolution plan through Rs 7,300 crore borrowing from the lenders and Rs 2,750 crore through equity. On February 27, 2024, NCLT approved Hinduja Group firm's Rs 9,650-crore resolution plan for Reliance Capital.
The NCLT Mumbai bench further directed that whatever cash is there during the extended period will go to the Committee of Creditors (CoC). In an order on May 26, the tribunal approved IIHL's application for an extension of the May 27 deadline for paying Rs 8,000 crore to acquire Reliance Capital. The group had cited pending regulatory approvals and compliance requirements as reasons for the extension.
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IIHL made the highest cash offer of Rs 9,661 crore in the auctions and secured as much as 99 per cent of the lender's votes. The bid also included the Rs 500-crore cash balance with Reliance Capital going to the lenders, taking the overall recovery to Rs 10,200 crore or about 65 per cent as against Rs 16,000 crore principal secured debt the crippled company owed to lenders. Meanwhile, a lawsuit challenging the second e-auction filed by Torrent Group is pending before the Supreme Court and needs to be concluded.
(With inputs from PTI)
