IndusInd, Oaktree Capital, 2 other entities bid for Reliance Capital: report

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IndusInd, Oaktree Capital and 2 other entities submit offers for Reliance Capital

New Delhi:

IndusInd Bank, US asset management firm Oaktree Capital, Torrent Group and B-Right Group have submitted offers to buy debt-ridden Reliance Capital Ltd (RCL), sources say.

The sources said these offers are in the range of Rs 4,000 crore for the company, which has eight different business segments.

The deadline for submitting bids ended on August 29. The deadline was extended five times.
Initially, 54 companies had expressed interest in RCL, but only four submitted their bids under insolvency resolution.

Two options were available to bidders. In the first option, bidders were required to submit bids for the entire RCL, and in the second, they had the choice of bidding for specific business verticals.

These verticals include general insurance, asset reconstruction and securities businesses.

The sources said Piramal Group, Zurich Re and US private equity fund Advent had made bids for the Reliance General Insurance business.

They also added that no offers had been received for the Reliance Nippon Life Insurance business.

Jindal Steel and Power and UV Asset Reconstruction Company submitted bids for RCL’s asset reconstruction business.

Choice Equity and Global Fincap are among the bidders for other RCL assets.

In a regulatory filing, RCL said the company’s 17th meeting of the Committee of Creditors (CoC) was held on Tuesday.

The company administrator assessed the CoC on the status of claims, the status of the CIRP process, the continuity of business operations and the way forward in terms of activities or milestones as stipulated in the Insolvency and Bankruptcy Code (IBC).

As part of the resolution process, the record indicated that the RCL administrator had received a total of 14 resolution plans/offers.

In November last year, the Reserve Bank of India (RBI) replaced RCL’s board in the face of defaults and serious governance issues. The business has been referred for the Business Insolvency Resolution Process (CIRP).

It is the third major non-bank financial company (NBFC) against which the central bank has initiated bankruptcy proceedings. The other two were Srei Group NBFC and Dewan Housing Finance Corporation Ltd (DHFL).

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