Reliance Capital’s lenders stated to the appeal tribunal NCLAT on Monday that creditors have the freedom to negotiate over resolution proposals in an effort to obtain a higher valuation for the stressed asset.
In his closing remarks, attorney Kapil Sibal argued on behalf of the lenders that the Insolvency & Bankruptcy Code’s (IBC) goal is to maximize the value of the assets and that the Committee of Creditors is free to negotiate the terms for that goal.
The National Company Law Appellate Tribunal (NCLAT) received a plea from lenders Reliance Capital challenging an NCLT judgment that barred them from conducting any further auction for the bankrupt company, after Torrent Investments’ bid was approved.
The challenge mechanism for financial bids had been completed as of December 21, 2022, according to the Mumbai bench of the NCLT (National Company Law Tribunal), with Torrent Investments’ offer of Rs 8,640 crore being the highest.
Sibal, who is a representative for Vistra ITCL (India), one of Reliance Capital’s creditors, said that Subclause (1-A) of Regulation 39 of the IBC gives lenders the authority to negotiate resolution options.
On Tuesday, senior attorney Mukul Rohatgi will argue on behalf of Torrent Investments.
In order to add one additional submission on behalf of the company, Mukul Rohatgi, senior counsel for Torrent Investment, has filed a request.
One of the lenders, Vistra ITCL (India), and the company belonging to the Hinduja Group, IndusInd International Holdings Ltd (IIHL), are arguing before the NCLAT on the NCLT’s ruling.
On January 9, Torrent Investments submitted a plea asking the tribunal to halt the lenders’ proposal to conduct a new auction for the acquisition of RCap. Later, a petition against the NCLT judgment was also filed by the Hinduja Group firm.
Torrent Investment won the last round of the ‘challenge mechanism’ with the highest bid of Rs8,640 crore.
The total debt held by Reliance Capital is around Rs 40,000 crore.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.