Reliance Capital resolution deadline extended for another 2 months: Sources

Reliance Capital Committee of Creditors (COC) in its meeting on Thursday decided to extend the Resolution Process timeline by another two months to November 2, 2022. The timeline had already been once extended by 90 days from June 3 to September 2, 2022.

This is the second extension granted by the COC for the completion of RCAP's resolution process.
 

As per the IBC rules, the Adminitrator had to close the resolution of RCAP within 180 days i.e. by 3 June 2022.

In addition, the COC, in its meeting, also decided to extend the last date for the submission of Resolution Plan by the prospective bidders from 20 June to 11 July.

The deadline for the RP submission has been extended as a few prospective bidders had written to the Administrator seeking more time for the plan submission.

Piramal Enterprise had asked the deadline to be extended to 10 August, while IndusInd Bank had requested to extend the timeline to 15 July.  

According to the sources, the timelines for Resolution Process completion and Resolution Plan submission have been extended due to the cold response from the bidders.

Out of around 54 EOIs received initially, now only a handful of bidders are engaged with the Administrator.

According to sources, under Option 1, for the entire company i.e. Reliance Capital, Piramal Enterprises, Yes Bank, and Torrent Group are actively engaged with the Administrator, while under option 2, for the general insurance cluster, Zurich Insurance and Blackstone have shown interest and for the Life Insurance cluster, Cholamandalam Group has shown interest.