MARKET UPDATES: For submission of binding bids as part of its resolution process, Suitors for the debt ridden Reliance Capital Limited (RCL) have requested an extension of up to 4 months for the submission of binding bids.
Source said, Piramal Finance has requested an extension of 12 weeks, or till December, while US-based asset management fund Advent has requested a 16-week extension. The deadline for submitting binding bids and the earnest money deposit (EMD) of Rs 75 crore is September 29 according to the existing schedule.
The sources added that other bidders have requested a similar extension of the deadline for submitting binding offers, with IndusInd Bank asking for a 10-week extension, Oaktree asking for a 12-week extension, and Zurich Re asking for an 8-week extension, citing the need for time for due diligence.
The Committee of Creditors (CoC) will meet in the upcoming week to decide on a time extension to maximise value for lenders and guarantee that there are as many binding bids as possible for Reliance Capital's assets. The National Company Law Tribunal (NCLT) must receive the final resolution plan by November 1, 2022.
Six bids for the entirety of Reliance Capital's assets were received last month from Torrent, IndusInd Bank, Oaktree Capital, Cosmea Financial, Authum Investment, and B Right Group. These offers for the company, which has eight separate business verticals, were in the range of Rs 4,500 crore.
Only three parties have made bids between Rs 3,500 crore and Rs 7,000 crore for the Reliance General Insurance business: Piramal Finance, Zurich Re, and Advent. The bidders have a choice between two options. Bidders had two choices: in the first, they had to submit proposals for the full RCL; in the second, they could only submit bids for certain business verticals. According to sources, RCL's asset reconstruction business has received bids from UV Asset Reconstruction Company and Jindal Steel and Power.
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