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Mumbai: Torrent Investments, the highest bidder in the earlier round for Reliance Capital (RCap), has decided to approach the Supreme Court against reopening the process. The move comes even as lenders have decided to invite fresh bids for the bankrupt Anil Ambani company on March 20.
Earlier this month, the National Company Law Appellate Tribunal (NCLAT) had allowed RCap’s lenders to hold a second round of auction for the sale of RCap. The auction is described as a challenge round as, under the auction mechanism followed in insolvency proceedings, rival bidders are given an opportunity to outbid the highest bidder.
Lenders plan to fix a minimum threshold bid of Rs 9,500 crore, with the subsequent round rising to Rs 10,000 crore and increments of Rs 250 crore thereafter. Earlier, the National Company Law Tribunal (NCLT) had decided that the challenge mechanism had concluded with Torrent Group as the highest bidder as subsequent bids were belatedly submitted. Torrent had bid Rs 8,640 crore, while the Hinduja Group through IndusInd International Holdings had bid Rs 8,110 crore.
Lenders had decided to extend the challenger round after Hindujas made a belated all-cash bid of Rs 9,000 crore.
The RBI initiated corporate insolvency proceedings against RCap in November 2021 after the company failed to meet its debt obligations. The main attraction for bidders is RCap’s holding in its insurance subsidiaries — Reliance General Insurance and Reliance Nippon Life Insurance.
Mumbai: Torrent Investments, the highest bidder in the earlier round for Reliance Capital (RCap), has decided to approach the Supreme Court against reopening the process. The move comes even as lenders have decided to invite fresh bids for the bankrupt Anil Ambani company on March 20.
Earlier this month, the National Company Law Appellate Tribunal (NCLAT) had allowed RCap’s lenders to hold a second round of auction for the sale of RCap. The auction is described as a challenge round as, under the auction mechanism followed in insolvency proceedings, rival bidders are given an opportunity to outbid the highest bidder.
Lenders plan to fix a minimum threshold bid of Rs 9,500 crore, with the subsequent round rising to Rs 10,000 crore and increments of Rs 250 crore thereafter. Earlier, the National Company Law Tribunal (NCLT) had decided that the challenge mechanism had concluded with Torrent Group as the highest bidder as subsequent bids were belatedly submitted. Torrent had bid Rs 8,640 crore, while the Hinduja Group through IndusInd International Holdings had bid Rs 8,110 crore.
Lenders had decided to extend the challenger round after Hindujas made a belated all-cash bid of Rs 9,000 crore.
The RBI initiated corporate insolvency proceedings against RCap in November 2021 after the company failed to meet its debt obligations. The main attraction for bidders is RCap’s holding in its insurance subsidiaries — Reliance General Insurance and Reliance Nippon Life Insurance.
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