Reliance Capital’s lenders will meet on Friday to determine on the problem mechanism

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By PTI ist (printed)

Lenders of debt-ridden Reliance Capital Restricted (RCL) will meet on Friday to determine on the brand new ‘Problem Mechanism’ clause within the decision course of.

Lenders of debt-ridden Reliance Capital Restricted (RCL) will meet on Friday to determine on the brand new ‘Problem Mechanism’ clause within the decision course of.

The ‘Problem Mechanism’ offers lenders the facility to oppose any decision plan as and when they need.

Some bidders have raised issues with the administrator about introducing this new clause at this remaining stage of the bidding course of, sources mentioned, including that there was no point out of this mechanism within the Request for Decision Plan (RFRP) doc .

Sources mentioned these bidders have argued that there was no such clause within the bidding technique of DHFL, which was the most important decision of loans of over Rs 95,000 crore made by way of NCLT within the monetary providers sector.

The final date for submission of binding bids for Reliance Capital Restricted (RCL) and its subsidiaries is November 28.

RCL had given two choices to all of the bidders. Underneath the primary choice, firms can bid for Reliance Capital Restricted, which incorporates its eight subsidiaries or clusters. The second choice gave the bidders the liberty to bid for his or her subsidiaries individually or together.

RCL has eight companies that are within the block. These embody basic insurance coverage, life insurance coverage, medical health insurance, securities enterprise and asset reconstruction and so on.

The Reserve Financial institution of India (RBI) on November 29 final 12 months outdated the board of RCL in view of fee defaults and severe governance points.

In February this 12 months, an RBI-appointed administrator had invited expressions of curiosity for the sale of Reliance Capital.

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