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IDBI Trusteeship Services has alleged that the minutes of the meeting of Reliance Capital Ltd’s committee of creditors (CoC) do not accurately reflect the discussions that happened at the meeting.
The discussions pertain to the 11th CoC meeting held on June 16 and the 12th meeting on July 1, the company said in a letter to the administrator of Reliance Capital, earlier this month.
CoC minutes
The contention is with respect to “certain discussions claimed to be held” with Credit Suisse Mumbai branch during the June 16 meeting and one particular agenda item in the July 1 meeting, according to the letter accessed by BusinessLine.
“It is hereby clarified that the minutes of the 11th CoC meeting do not accurately reflect the discussions held during the said 11th CoC meeting. Kindly let us know the basis for recording the purported discussions, as recorded in the minutes of the 11th CoC meeting,” IDBI Trustee said. The company added that it also sent an e-mail to Reliance Capital stating the inaccuracies in the minutes of the July 1 meeting, but has received no response or revisions.
IDBI Trustee has now sought Reliance Capital to share the video recordings of both the meeting, take on board its amendments and circulate the revised minutes, according to the letter.
Resolution deadlock
This allegation comes as IDBI Trustee and Reliance Capital are in a deadlock over pledged shares of Reliance General Insurance Company — a key asset for the resolution of Reliance Capital.
Reliance Home Finance had issued non-convertible debentures which it did not redeem. As part of the restructuring exercise in 2019, Reliance Capital pledged its entire shareholding in Reliance General Insurance in favour of the debenture trustee IDBI Trusteeship, which was later invoked.
After the initiative of insolvency proceedings against Reliance Capital, administrator Nageshwara Rao had approached the NCLT to direct IDBI Trusteeship to free up the shares of Reliance General Insurance, so that it can be included in the assets available for resolution. IDBI Trusteeship refused to do so on grounds that it’s merely the custodian of the shares and has no authority to hand them over.
In the NCLT hearing on Monday, IDBI Trustee argued that giving up the shares of Reliance General Insurance would be akin to giving up the security in a secured debt, according to per reports. The case is next scheduled to be heard on August 26.
Meanwhile, the deadline for submission of resolution bids for Reliance Capital has been extended for the fifth time to August 28.
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