Lenders to Reliance Home Fin bid in favour of Authum’s resolution plan

Our Bureau Mumbai | Updated on June 21, 2021

₹1,800 crore of cash available with Reliance Home will be distributed to lenders

Over 91 per cent of lenders to Reliance Home Finance have voted in favour of the resolution plan of Authum Investment and infrastructure.

Voting for the resolution of the debt-ridden home finance company had started on May 31 and ended on June 19.

“Our company, on June 19, emerged as the successful highest bidder in relation to acquisition of all assets of Reliance Home Finance under the resolution process in terms of Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019,” said Authum in a regulatory filing.

Regulatory approvals

In this connection, the Lead Bank on behalf of lenders of RHFL under the Inter-Creditor Agreement (ICA), has issued a letter of intent in favour of the company, it further said, adding that it is subject to regulatory and statutory approvals.

Authum had submitted a bid of ₹2,911 crore, which includes ₹24 crore as deferred interest to financial creditors.

About ₹1,800 crore of cash available with Reliance Home Finance will be distributed to lenders, along with the proceeds from the resolution plan.

“Authum’s plan offered the highest net present value and scored the highest in terms of ease of implementation. It was comprehensive addressing all the stakeholders, including RHF employees and customers,” said the source.

While the formal voting period has ended, the lenders have agreed to accept votes from a few more lenders who are still waiting for internal approvals.

Networth of Authum

Authum Investment and Infrastructure is a registered NBFC involved in investments in shares and securities and has a networth of over ₹1,500 crore as on December 31, 2021.

Reliance Home Finance, a subsidiary of Anil Ambani-controlled Reliance Capital, had a debt of about ₹11,200 crore.

“We believe that the acquisition of RHFL, a reputed lending franchise to affordable housing and housing segments, makes our company a significant player in diversified financial services,” said Authum.

Published on June 21, 2021

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