Comments
The Committee of Creditors of Reliance Capital Ltd has written to Hinduja-backed Indusind International Holdings Ltd. to fulfill its commitments as part of the debt resolution process ahead of the March 31 deadline.
“The CoC would like to highlight that pursuant to the discussions held between the representatives of IIHL, including Ashok Hinduja (promoter of Hinduja group), in the meeting of the CoC held on December 13, 2023, IIHL had clarified and committed that IIHL would implement the Resolution Plan and make payments to the lenders in terms of the Resolution Plan before March 31, 2024,” stated a letter from CoC’s legal representative, Luthra and Luthra Law Offices India
‘Provide information’
“However, the CoC notes that, till date, certain documents and information in relation to regulatory approvals (IRDAI) continue to be pending at IIHL’s end, as also the implementation steps, despite multiple follow-ups. In light of the above, the CoC hereby requests IIHL to provide the necessary information/ documents and cooperation in order to obtain relevant regulatory approvals at the earliest. The CoC further requests IIHL to ensure that, in line with its own commitment, the Resolution Plan is implemented on or before March 31, 2024,” the letter added.
IndusInd International has submitted a proposal that includes an upfront cash payment of ₹9,650 crore, accounting for 37.03 per cent of the initial amount claimed. The company has also proposed an amount net of ₹50 crore for the benefit of the CoC, which will be part of the upfront cash and an additional ₹11 crore over and above the proposed amount.
The proposed acquisition is now awaiting the approval of the RBI for Reliance Capital and Reliance Asset Reconstruction, Company Ltd., IRDAI for Reliance General Insurance and Reliance Nippon Life Insurance, CCI for the takeover, and SEBI for Reliance Securities and other entities. The deal is subject to the sale of shares of Reliance Home Finance held by Reliance Capital in the open market on various dates.
Comments
COMMENT NOW
