The deadline for submission of the resolution plan for Reliance Capital is likely to be extended, with a number of bidders seeking more time to complete the due diligence process under the ongoing insolvency process.
According to sources close to the development, the size of the Reliance Capital Group and its subsidiaries seems to be turning into a challenge for many bidders. Many are interested in the profitable general and life insurance arms of the debt-ridden group and are finalising their approaches
According to sources, potential bidders, including Piramal, Torrent, Oaktree and IndusInd, have written to the Administrator of RCap to extend the deadline to September 15. The resolution plan submission date has already been extended four times in the past couple of months. The current deadline to submit the resolution plan ends on August 10, 2022.
“The Committee of Creditors (COC) will be meeting in the coming week to take stock of the resolution process of Reliance Capital and consider the request for a deadline extension,” said a banking source.
According to sources, out of the 54 expressions of interest received initially, only a handful of bidders are actively engaged in the resolution process of Reliance Capital. Companies have the option to bid for either the full group level entity or business clusters of subsidiaries.
A consortium-led approach for the resolution of Reliance Capital seems to be turning into the preferred approach for many of the bidders.