The resolution of Reliance Commercial Finance (RCF) has been approved by debenture holders.

“NBFC Authum Investment and Infrastructure’s resolution plan has been voted with an overwhelming majority of over 99 per cent by the debenture holders,” said a person familiar with the development.

The meeting was held on December 8 after the Bombay High Court refused to stay the meeting of the bond holders of the company to vote on the resolution.

Also read: Authum Investment to buy Reliance Commercial Fin in ₹1,629-cr deal

In July this year, lenders to Reliance Commercial Finance had approved the resolution plan by Authum Infrastructure and Investment of ₹1,585 crore.

Among other provisions, it provides for 100 per cent recovery to retail debenture holders.

The implementation of the plan was, however, subject to approval by the non-lenders.

It had been delayed due to a circular by market regulator SEBI on voting by debenture holders.

“Authum’s resolution plan has been shared with the Debenture Trustees to call for the Debenture Holder’s meeting and seek approval on the resolution plan. In the RCFL lender’s meeting, all RCFL lenders had agreed to further extend the inter-creditor agreement period till December 31, 2021,” Reliance Capital had said in its second-quarter results.

Reliance Commercial Finance or Reliance Money is a 100 per cent subsidiary of Anil Ambani-controlled Reliance Capital. It had debt of about ₹9,017 crore and to that extent could help in the resolution of Reliance Capital, which has been put under bankruptcy proceedings by the RBI. While sources said that RCF’s resolution can go ahead independently, experts said that it may need NCLT approval given that the parent entity is under RBI direction.

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