Anil Ambani’s Reliance Capital's lenders said the company will have to pay them Rs 9,650 crore by the said date.
Anil Ambani, the younger brother of India’s richest man Mukesh Ambani, has been trending in the news for the past few weeks due to his massive deals. While the shares of Reliance Power continue to give returns through the stock market, Anil Ambani’s debt-ridden Reliance Capital struck an acquisition deal with Hinduja Group’s IndusInd International Holdings (IIHL). Anil Ambani’s Reliance Capital secured a buyout offer of Rs 9650 crore from Hinduja Group a few months ago. As per the reports, Hinduja Group is in talks to borrow Rs 8000 crore to acquire Anil Ambani’s Reliance Capital under the bankruptcy code. Now concerned over slow progress, the lenders of debt-ridden Reliance Capital (RCAP) have asked IIHL to expedite the process of obtaining necessary regulatory approvals and stick to the resolution plan deadline of May 27.
In a meeting with senior officials of IIHL, lenders to Anil Ambani’s Reliance said the company will have to pay them Rs 9,650 crore by the said date, a source said. It is noteworthy that the National Company Law Tribunal (NCLT), Mumbai, while approving the resolution plan on February 27, had directed IIHL to implement the resolution plan within 90 days i.e. by May 27. As per the approved resolution plan, IIHL will have to make an upfront payment of R 9,650 crore to the RCAP lenders.
According to sources, lenders expressed concern over the slow progress towards implementation of the RCAP resolution plan, as IIHL is yet to receive key IRDAI approvals on the resolution plan. IRDAI has raised several questions and concerns over the proposed corporate structure to transfer RCAP's insurance businesses to IIHL, and the company has not yet addressed those concerns.
IRDAI's approval is crucial for the transfer of insurance businesses of Reliance Capital i.e. Reliance General Insurance and Reliance Nippon Life Insurance to IIHL. The RBI approval for transfer of RCAP business to IIHL also expires on May 17. The approval given on 17 November was valid only for a period of six months.
In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.
(with inputs from PTI)
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