The Hinduja Group-owned IndusInd International Holdings (IIHL) has secured an extension from the National Company Law Tribunal (NCLT) to finalize its acquisition of bankrupt Reliance Capital. IIHL now has an additional 18 days, until August 10, to complete the necessary formalities for implementing its resolution plan. This extension comes after the tribunal, headed by Justice Virendrasingh G Bist and Prabhat Kumar, ordered IIHL to deposit the equity component of Rs 2,750 crore in an escrow account by July 31.
IIHL’s proposed funding for the resolution plan involves raising Rs 7,300 crore through debt financing from lenders and allocating Rs 2,750 crore through equity. The NCLT had previously approved IIHL’s Rs 9,650-crore resolution plan for Reliance Capital on February 27, 2024. The Mumbai bench of the NCLT has also directed that any cash accumulated during the extended period will be transferred to the Committee of Creditors (CoC).
In a previous order on May 26, the tribunal granted IIHL an extension for the payment of Rs 8,000 crore to acquire Reliance Capital, pushing the original deadline from May 27. The group cited pending regulatory approvals and compliance requirements as reasons for the delay. IIHL had emerged as the highest bidder in the auctions for Reliance Capital, offering a cash bid of Rs 9,661 crore and securing 99% of the lender’s votes. The bid also included the Rs 500-crore cash balance held by Reliance Capital, which will be given to the lenders, resulting in a total recovery of Rs 10,200 crore or about 65% of the Rs 16,000 crore principal secured debt owed by the ailing company.
Currently, a lawsuit filed by Torrent Group challenging the second e-auction is pending before the Supreme Court and awaits resolution. (With inputs from PTI)
