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Taking forward the resolution process of Reliance Capital, the RBI-appointed administrator has invited expressions of interest for the resolution of the non-banking finance company.
“...the administrator, hereby, invites Expressions of Interest from interested resolution applicants for submission of resolution plans in respect of the corporate debtor,” it said.
All prospective resolution applicants will have two options for submitting their plans – either for Reliance Capital as a going concern with all assets or for the company along with one or more business clusters.
However, the administrator and the creditors can give greater weightage to the first option of selling all assets together.
“They can submit EOIs for acquisition of RCL as a going concern. Under Option I, EoIs for selective assets will not be accepted,” said the document.
The administrator and the CoC reserve their rights to accord greater weightage to EoIs under this option in a manner to be decided by the CoC, it further said.
“Having regard to the complexity and scale of operations of RCL, the administrator has, in consultation with and prior approval of the CoC of RCL, categorised the business of RCL such that it includes RCL as a going concern, along with one or more of the following VIII clusters,” said the document, outlining the second option.
These clusters include the business of RCL, including investment in Reliance General Insurance and Reliance Health Insurance; business of RCL comprising investment in Reliance Nippon Life Insurance; business of RCL comprising investment in Reliance Asset Reconstruction Company; business of RCL comprising investment in Reliance Securities, Reliance Financial, Reliance Wealth Management and Reliance Commodities.
Other clusters include business of RCL comprising Reliance Home Finance, as well as the business of RCL comprising Reliance Commercial Finance.
Significantly, resolution plans approved by some of the specified lenders of Reliance Home Finance and Reliance Commercial Finance may be proposed to RCL for consideration by its CoC.
Both companies were previously part of separate asset monetisation plans by Reliance Capital.
EoIs can be submitted by March 11 this year, and the last date for submission of resolution plans is April 20.
Reliance Capital became the third NBFC where the Reserve Bank of India has initiated insolvency proceedings.
On November 29 last year, the RBI superseded the board of the Anil Ambani-owned Reliance Capital and appointed Nageswar Rao Y, former Executive Director, Bank of Maharashtra, as the administrator of the company.
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