Amid speculation around a Swiss Challenge mechanism and tepid response from bidders, Reliance Capital’s CoC (committee of creditors) is planning to hold the extended challenge mechanism for the company’s resolution on April 4, sources told businessline.

“The CoC has invited all the (four) original bidders. But we don’t know yet how many may participate,” the source said, adding that at the moment, there is no consideration of opting instead for the Swiss Challenge mechanism.

In addition to Torrent and Hinduja, US-based Oaktree Capital and Cosmea Financial in collaboration with Piramal Capital had participated in the bidding for resolution of RCap. However, the latter two withdrew their bids before the first round of auction.

businessline had reported, quoting sources, that Torrent Investment may not participate in the second auction and the Hinduja Group may refuse to increase its bid despite the CoC voting for a second round after the latter proposed hiking its bid after the first round of auction on December 21, 2022.

Further, in Friday’s CoC meeting, Torrent is reported to have suggested conducting a Swiss Challenge auction with their earlier bid of ₹8,640 crore — also the highest bid of the first auction — as the threshold.

The CoC had earlier proposed holding the extended challenge mechanism on March 20, however it was postponed due to a Supreme Court hearing. The CoC has proposed a threshold bid amount higher than the first auction, at ₹9,500 crore on a net present value basis.

The apex court, which ruled in favour of the CoC, was hearing Torrent’s plea against holding the second auction as the first round was completed successfully with Torrent emerging as the highest bidder.

Related Topics
comment COMMENT NOW