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Mumbai, TNN: The highest bidder in the previous round for Reliance Capital (RCap), Torrent Investments, has decided not to reopen the process and will appeal to the Supreme Court. Even though lenders have decided to invite new bids for the bankrupt Anil Ambani company on March 20, the move comes at the same time.
Recently, the Public Organization Regulation Redrafting Court (NCLAT) had permitted RCap's loan specialists to hold a second round of closeout for the offer of RCap. Due to the fact that rival bidders have the opportunity to outbid the highest bidder, the auction is referred to as a challenge round. This is because the auction mechanism used in insolvency proceedings allows for this.
The lenders plan to set a minimum bid of Rs 9,500 crore for the first round, rising to Rs 10,000 crore in subsequent rounds in increments of Rs 250 crore. Due to the late submission of subsequent bids, the National Company Law Tribunal (NCLT) had previously determined that the challenge mechanism had concluded with Torrent Group as the highest bidder. The Hinduja Group made a bid of Rs 8,110 crore through IndusInd International Holdings, while Torrent offered Rs 8,640 crore.
After Hindujas made a late all-cash offer of Rs 9,000 crore, lenders decided to extend the challenger round.
After RCap failed to meet its debt obligations, the RBI initiated corporate insolvency proceedings in November 2021. Bidders are most interested in RCap's stake in the insurance companies it owns, Reliance General Insurance and Reliance Nippon Life Insurance.
