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Voting on the resolution plan for debt-ridden Reliance Commercial Finance has started and is likely to be completed by June 25.
“Banks have begun voting for the successful resolution plan of Reliance Commercial Finance on June 7 and it is expected to be completed by June 25,” said a person familiar with the development.
The resolution would help address the ₹9,017 crore debt of Reliance Commercial Finance, which is a 100 per cent subsidiary of Anil Ambani-controlled Reliance Capital.
Final bidders
The four final bidders whose plans have been taken up for voting include Authum Infrastructure and Investment, UV ARC in consortium with Hawk Capital, Invent ARC and Alchemist ARC. Bank of Baroda is the lead banker under the Inter Creditor Agreement for the resolution.
The debt resolution of Reliance Home Finance is also underway and the voting is expected to be completed by June 15.
Lenders had initiated the resolution of both the companies under the June 7, 2019 circular of the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets Directions 2019 .
Reliance Commercial Finance, which has been re-branded as Reliance Money, offers small and medium enterprises loans, loans against property, infrastructure financing, agriculture loans, supply chain financing, micro financing, vehicle loans and construction finance.
The total financial indebtedness of Reliance Capital stood at ₹20,916.78 crore including accrued interest up to April 30, 2021, as per a recent regulatory filing. The total amount of outstanding from the banks and the financial institutions was ₹721.9 crore.
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