The committee of creditors (CoC) of Reliance Capital is unhappy with the resolution bids received under the insolvency process of the company and are now negotiating with the bidders, sources told businessline.

The CoC met on Wednesday, when all the bids were tabled and discussions were held on how to proceed. The initial assessment is not very optimistic and so the lenders will be negotiating with the bidders on how they can improve their offerings.

In parallel, the required due diligence of the bidders and compliance with the ‘fit and proper’ criteria will be conducted to ensure only viable bidders can proceed, a source said, adding that the CoC is next scheduled to meet in the coming week.

What next?

If the negotiations are successful, the CoC will vote on the best resolution plan, which will be chosen. However, if the CoC remains unsatisfied with the plans, it will have to seek alternative options by approaching the NCLT. The lenders will then have 2-3 options, one of which could be seeking a rebidding process, another person with knowledge of the matter said.

businessline had earlier reported that Reliance Capital’s CoC received eight binding bids within the November 28 deadline for submission of final bids. These included four bids for Reliance Capital as a whole, from the Hinduja Group, US-based private equity player Oaktree Capital, Ahmedabad-based Torrent Group and a combined bid from Cosmea Financial and Piramal Group.

In addition, UV Asset Reconstruction Company submitted a fee-based bid for the individual assets as a whole under option-I. Further, Jindal Power, Authum Investment Infrastructure and Choice Equity Broking have submitted bids under option-II for individual assets of Reliance Capital.

Related Topics
comment COMMENT NOW