Deadline to submit Reliance Capital resolution plans extended till June 30

Lenders have agreed to extend the last date to submit bids for the resolution of debt-ridden Reliance Capital Ltd by a month till June 30 as bidders have given cold response so far, sources said.

Committee of Creditors (CoC) had earlier fixed May 26 as the last date for submission of resolution plans.

After a review meeting of lenders on Wednesday, it was decided to extend the date till June 30 in view of the poor response.

So far only eight out of 54 Prospective Resolution Applicants (PRAs) have engaged with lenders, sources said.

Out of 54 PRAs who had submitted expressions of interest for RCL assets, 45 have not engaged with the CoC at all, sources said, adding, there has been no communication from 45 PRAs, as they have become completely inactive.

Of the eight active PRAs, five have sought clarifications on certain issues from the administrator of RCL, while only three, including Piramal, Yes Bank and HDFC Ergo, have held management meetings on the resolution plan submission.

According to the lenders, sources said, the cold response from majority of the PRAs has been due to the adverse economic conditions and challenging global environment.

RCL had offered two options to all the bidders. Under the first option, companies could bid for Reliance Capital, including its eight subsidiaries or clusters. The second option gave the company freedom to bid for its subsidiaries, individually or in a combination.

RCL has eight businesses that are on the block. These include general insurance, life insurance, health insurance, securities business and asset reconstruction, among others.