Lenders mull 90-day extension to close process: Reliance Capital resolution

Reliance Capital resolution: According to reports, lenders reviewed a proposal for a 90-day extension to finish the debt-ridden Reliance Capital Ltd (RCL) resolution process supported by the Anil Ambani Group on Wednesday. 
 
Reliance Capital’s Committee of Creditors (CoC) met on Wednesday to evaluate the proposals submitted. 
 
The administrator is required by the Insolvency and Bankruptcy Code (IBC) to complete the resolution of RCL within 180 days, or by June 3, 2022. 
 
The CoC will have until September 3 to complete the procedure if the 90-day extension is granted. 
 
The CoC will have until September 3 to complete the procedure if the 90-day extension is granted. 
 
The NBFC has been approached by 54 companies, including Adani Finserve, ICICI Lombard, Tata AIG, HDFC Ergo, and Nippon Life Insurance. 
 
According to reports, the CoC discussed seeking a 90-day extension at its meeting, as the majority of lenders were in favour of extending the deadline for the resolution process’ completion. 
 
According to reports, the final decision will be made at the next meeting.

Reliance Capital resolution

In respect to the company’s Corporate Insolvency Resolution Process (CIRP), the RBI appointed Nageswara Rao Y as the administrator. 
 
This is the third significant non-banking financial firm (NBFC) against which the central bank has lately filed a bankruptcy petition under the International Bankruptcy Code (IBC). Srei Group NBFC and Dewan Housing Finance Corporation were the other two (DHFL). 
 
The RBI then filed an application with the National Company Law Tribunal’s Mumbai bench to initiate a CIRP against the company (NCLT). 
 
The RBI-appointed administrator requested expressions of interest (EoIs) for the sale of Reliance Capital in February of this year. 
 
In September, RCL informed shareholders at its annual general meeting that the company’s consolidated debt was Rs 40,000 crore. In the quarter ending December 2021, it announced a decrease of its consolidated net loss to Rs 1,759 crore. 
 
In the same quarter a year ago, the company incurred a net loss of Rs 3,966 crore. However, compared to the previous quarter ended September 2021, the net loss increased to Rs 1,156 crore. 
 
In Q3FY22, the company’s total income was Rs 4,083 crore, down from Rs 4,890 crore in Q3FY21. 

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