MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Monday, 17 June 2024

Reliance Capital lenders to meet amid concerns over Hinduja group's delay in buyout deal

The lenders had asked IndusInd International Holdings Ltd (IIHL), the Hinduja group arm, to accelerate the process of obtaining necessary regulatory approvals and thereby meet the resolution plan deadline of May 27

Our Bureau Mumbai Published 30.04.24, 11:42 AM
Representational image

Representational image File picture

The lenders of Reliance Capital Ltd (RelCap) could meet on Tuesday as they are reportedly worried over the slow progress made by the Hinduja group in its acquisition of the non-banking finance company.

The lenders had asked IndusInd International Holdings Ltd (IIHL), the Hinduja group arm, to accelerate the process of obtaining necessary regulatory approvals and thereby meet the resolution plan deadline of May 27.

ADVERTISEMENT

A PTI report said that in a meeting held last Friday with senior officials of IIHL, the RelCap lenders said that the company has to make a payment of 9,650 crore to them by the deadline.

The National Company Law Tribunal (NCLT) Mumbai, while approving the resolution plan in February, had directed IIHL to implement the plan within 90 days which falls on May 27.

IIHL has to make an upfront payment of 9,650 crore to the lenders as per the approved resolution plan. IIHL is yet to receive the IRDAI approval on the resolution plan.

The insurance regulator has reportedly raised multiple queries over the proposed corporate structure for the transfer of RelCap's insurance businesses to IIHL, and the company has yet to address those concerns. The insurance businesses of RelCap include Reliance General Insurance and Reliance Nippon Life Insurance.

If IIHL is unable to complete the resolution process within the timeline, it will have to seek fresh approval.

Follow us on:
ADVERTISEMENT