Reliance Capital administrator seeks 90-day extension from NCLT to implement resolution plan

The administrator of Reliance Capital (RCap) has filed an application with the National Company Law Tribunal (NCLT) seeking a 90-day extension beyond the May 27, 2024 deadline to implement the resolution plan submitted by the successful bidder, the Hinduja Group. \r

The approved resolution plan, valued at Rs 9,650 crore, was submitted by Hinduja Group firm IndusInd International Holdings Ltd (IIHL). Reliance Capital, burdened with a debt of over Rs 40,000 crore, had its board superseded by the Reserve Bank in November 2021 due to governance issues and payment defaults. The administrator, Nageswara Rao Y, initiated a bidding process in February 2022, which attracted four initial bids. \r

However, the committee of creditors rejected all bids for offering lower values, leading to a challenge mechanism in which IIHL and Torrent Investments participated. The extension request aims to facilitate the smooth implementation of the approved resolution plan amidst the complex financial restructuring process.