The deadline for submission of Reliance Capital Resolution Plan has been extended to June 30

Lenders have agreed to extend the deadline for submission of tenders for the resolution of debt-ridden Reliance Capital Limited to June 30 as bidders have so far responded coldly, sources said.

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

Following 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 of the 54 potential resolution applicants (PRAs) are involved with lenders, sources said.

Of the 54 PRAs who submitted interest expressions for RCL assets, 45 were not involved with CoC at all, the source said, adding that there was no communication from the 45 PRAs as they were completely inactive.

Of the eight active PRAs, five have sought clarification from RCL administrators on some issues, while only three, including Piramal, Yes Bank and HDFC Ergo, have held management meetings to submit resolution plans.

According to lenders, sources said, most of the PRAs have reacted coldly due to unfavorable economic conditions and challenging global environment.

RCL offered two options to all bidders. Under the first option, companies can bid for Reliance Capital, including its eight subsidiaries or clusters. The second option gives the company the freedom to bid individually or collectively for its subsidiaries.

RCL has eight business blocks. These include general insurance, life insurance, health insurance, securities business and asset restructuring.

Since all of Reliance Capital’s subsidiaries are doing well, the company’s administrators and lenders cannot invite IBC-compliant resolution plans for those entities.

The Reserve Bank of India (RBI) on November 29 last year dismissed the board of Reliance Capital Limited (RCL) due to payment defaults and serious governance issues.

The RBI has appointed Nageshwar Rao Wai as the company’s Administrator on Corporate Insolvency Resolution Process (CIRP).

It is the third largest non-banking financial company (NBFC) against which the central bank has recently started bankruptcy proceedings under the IBC (Insolvency and Bankruptcy Code). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

The RBI subsequently filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate CIRP against the company.

In February this year, RBI-appointed administrator Reliance Capital invited interest in the sale.

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