Secure regulatory approvals, RCap’s lenders urge IIHL
Lenders to Reliance Capital Ltd have asked IndusInd International Holdings Ltd (IIHL), a Hinduja Group firm, to provide necessary documents and secure relevant regulatory approvals for acquiring the debt-ridden company at the earliest.
IIHL has sought approval from Reserve Bank of India (RBI), but approvals are pending from Insurance Regulatory and Development Authority of India (Irdai), Securities and Exchange Board of India (Sebi) and the Competition Commission of India (CCI).
In a letter issued through law firm Luthra and Luthra, the Committee of Creditors (CoC) has requested IIHL to ensure that, according to its commitment, the resolution plan is implemented and payments are made to lenders as per the plan by 31 March.
“The CoC would like to highlight that following the discussions held between the representatives of IIHL including Mr. Ashok Hinduja (promoter of Hinduja group) in the meeting of the
CoC held on December 13,
2023, IIHL had clarified and committed that IIHL would implement the Resolution Plan and make payments to the lenders in terms of the Resolution Plan before March 31, 2024,” the letter said.
The letter, which Mint has seen, further stated that this understanding was confirmed in the meeting of the CoC held on 22 December 2023 by the representatives of IIHL, who committed that IIHL would implement the resolution plan before 31 March 2024. “However, the CoC notes that till date, certain documents and information in relation to regulatory approvals (Irdai) continue to be pending at IIHL’s end, as also the implementation steps, despite multiple follow ups,” the letter said.
Last week, the National Company Law Tribunal (NCLT) approved the proposal of IIHL to take over Reliance Capital under the Insolvency and Bankruptcy Code. The matter had been languishing before various courts for over two years.
The tribunal in its order had held that the approval of the resolution plan shall not be construed as a waiver of any statutory obligations/liabilities of the company and shall be dealt with by the appropriate authorities in accordance with law.
In terms of the timeline, IIHL has 90 days to implement the resolution plan,
CoC has requested IIHL to ensure that the resolution plan is implemented and payments are made by 31 Mar