The Hinduja Group has declared that it is not “tenable” and has rejected lenders’ demands that the Reliance Capital (RCap) resolution plan be implemented by March 31. This includes the release of payment.
According to a letter from IndusInd International Holdings (IIHL) to the administrator, implementing the resolution plan—especially one as large and complex as RCap—”in less than one month and ten days (from the date of the National Company Law Tribunal order) is not only untenable and impractical, but unimaginable.”
Via IIHL, the Hinduja Group submitted a bid for RCap. Lenders for RCap have been asking for the resolution plan to be put into action by the end of this month. On Wednesday, however, the NCLT approved the process to be finished by May 27.
Additionally, IIHL stated that it is still committed to carrying out the resolution plan on schedule and in accordance with the NCLT order.
The Committee of Creditors (CoC) of RCap reported that it was still awaiting the delivery of some information and documents, including those concerning regulatory approvals, which were essential for expediting the resolution process.
In its order from February 27, the tribunal ordered IIHL to put the resolution plan into action as soon as possible after securing the required regulatory approvals—that is, within ninety days.
The CoC, which is made up of Yes Bank and Life Insurance Corporation of India (LIC), requested earlier this month that Hinduja Group put the resolution plan into action by the end of the month.
This was decided upon after a conversation with the Hinduja Group. IIHL pledged on December 13, 2023, to carry out the resolution plan and pay the lenders by March 31. Representatives from IIHL later reaffirmed this during a meeting of the CoC on December 22, 2023.
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