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Lenders to Reliance Commercial Finance have decided to go ahead with the resolution plan by Authum Infrastructure and Investment.
According to banking sources, the lenders have asked Authum Investment to convert the deferred payment into an upfront payment, and also requested to increase the bid value due to the delay in the implementation of the resolution plan.
Last year, lenders had approved the ₹1,629-crore bid placed by Authum to acquire Reliance Commercial. However, the process got delayed due to a circular by market regulator SEBI on voting by debenture holders. But recently, the Supreme Court has upheld the voting on debentures of Reliance Commercial and paved the way for the resolution of over ₹9,000-crore loan default by the company.
Sources said Authum has agreed to increase the bid value by ₹70 crore and convert the deferred payment into an upfront payment of ₹350 crore The lenders have fixed 23 September as the deadline to close the transaction.
They also rejected DB Realty’s One-Time Settlement proposal for its ₹633-crore default in RCFL, as lenders will have to take over 50 per cent haircut. DB Realty and two other group entities, that is Goregaon Hotel and Bamboo Hotel, had availed ₹633 crore worth of loans from RCFL between 2016 and 2018, and eventually defaulted on the repayment.
“The lenders approved all appropriate legal action required to recover the dues from DB Realty,” said a source.
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