IndusInd International says impossible to complete RCap acquisition in FY24

IndusInd International Holdings (IIHL), a Hinduja Group company and the successful resolution applicant for acquisition of Reliance Capital, has said that it will be unable to complete the resolution process in FY24.

While IIHL had in December 2023 said it would aim to implement the resolution plan by March 31, 2024, delays in getting the approval from NCLT and other judicial proceedings have now made it impossible to meet this deadline.

“You are cognizant of the fact that implementation of the Resolution Plan in totality, especially of the size and scale of Reliance Capital Limited in less than one month and 10 days (from the date of NCLT order), in not only untenable and impractical, but unimaginable. We are sure that you and all the members of the CoC are fully cognizant of this fact,” the company said in a letter to RCap’s administrator on March 12.

• Also read: RCap’s lenders urge Indusind to complete resolution process by March 31

It also highlighed the fact that despite this being communicated to the CoC (committee of creditors) on several occasions, the agenda for the second meeting of the Monitoring Committee on March 11 had still listed “implementation of the Resolution Plan by March 31” as an agenda item. 

“The CoC had asked IIHL if they can complete the acquisition by March 31 and make the payment by May 28, 2024 as per the 90-day timeline. However, they have said it will not be possible in FY24 but they should be able to complete it by May,” a source told businessline.

IIHL added that it remains committed to implementing the resolution plan in accordance with the NCLT order dated February 27, and within the stipulated timeline.

“We therefore once again reiterate that all stakeholders including yourself work jointly and expeditiously in obtaining the approvals remaining from authorities including the IRDAI such that the resolution plan can be implemented at the earliest within the desired time frame,” the letter said.

IndusInd International also alleged that despite deciding to circulate the detailed agenda for each upcoming meeting well in advance and no later than 48 hours prior to the meeting, the monitoring committee furnished the information sought and the documents requested “in piece meal and at the last moment”.  

“This approach is only adding to the delay in implementation of the Resolution Plan and for which we, at IIHL cannot be held responsible,” it said.

COMMENT NOW