Money & Banking

Debenture holders of Reliance Capital approve asset monetisation proposal

Our Bureau Mumbai | Updated on January 11, 2021

On Oct 31, Reliance Capital had floated an EoI for selling stake in its arms as part of the process to pay off its dues to creditors and become debt-free

The debenture holders of Reliance Capital have approved the asset monetisation proposal of the company, which includes 100 per cent stake sale in its general insurance business and broking arm as well as exiting its life insurance subsidiary.

The decision was taken at a meeting of the debenture holders of Reliance Capital on January 5.

“..we wish to inform that all the resolutions have been passed by the debenture holders with requisite majority,” it said in a regulatory filing on Monday.

Also read: Reliance Capital: 10 more bids submitted

They were to consider and approve proposals for the asset monetisation process, enabling enforcement of security interest, and acknowledgement and ratification for the reimbursement of costs incurred by the debenture trustee.

The monetisation process is under the aegis of the Committee of Debenture Holders and the Debenture Trustee Vistra, which represents 93 per cent of the total outstanding debt of the company.

Reliance Capital had, on October 31, floated an expression of interest (EoI) for selling stake in its subsidiaries as part of the process to pay off its dues to creditors and become debt-free.

It plans to sell off its entire stake in both Reliance General Insurance and Reliance Nippon Life Insurance. Besides, it also plans to sell 100 per cent stake in Reliance Securities, Reliance Financial and Reliance Health.

It also proposes to sell off its 49 per cent stake in Reliance Asset Reconstruction, 20 per cent holding in ICEX as well as other PE investments like Naffa Innovations and Paytm E-Commerce.

Meanwhile, separately, Reliance Home Finance and Reliance Commercial Finance are also undergoing resolution under the IBC process, and are expected to be completed by March 31 this fiscal.

Bank of Baroda is the lead banker under the ICA resolution process for both companies.

Published on January 11, 2021

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