RCap CoC wants Hindujas to implement resolution plan by March

The committee of creditors (CoC) of Reliance Capital (RCap), including Life Insurance Corporation of India (LIC) and Yes Bank, wants Hinduja Group to implement the resolution plan before the end of this month.

This is as per the discussion the Hinduja Group, the successful applicant for debt-laden firm, earlier had with the CoC. On December 13, 2023, IndusInd International Holdings (IIHL), the firm through which Hindujas had placed the bids, had committed to implement the resolution plan and make payments to the lenders before March 31.

This was later reiterated by IIHL representatives in a CoC meeting held on December 22, 2023.

However, the CoC is yet to get certain documents and information, including those pertaining to regulatory approvals, which are needed for faster completion of the resolution process, the lenders said in a letter issued through law firm Luthra and Luthra.

RCap’s CoC comprises LIC, Employees’ Provident Fund Organisation, IndusInd Bank, Deutsche Bank and various financial institutions, including IDBI Trusteeship Services and Broadpeak Investment Advisors.

In February, the Mumbai bench of the National Company Law Tribunal approved the resolution plan submitted by IIHL for RCap’s bankruptcy process. The plan provides for the implementation of the terms within 90 days from the approval.

However, this is subject to various approvals, including those from the Securities and Exchange Board of India, Reserve Bank of India and the Insurance Regulatory and Development Authority of India, among others.