The National Company Law Tribunal (NCLT) has directed IndusInd International Holdings (IIHL) to deposit Rs 2,750 crore in an escrow account within 48 hours as part of Reliance Capital’s resolution plan. The tribunal also clarified that the interest on the money in the escrow account will belong to the Committee of Creditors. IIHL was also asked to disclose the term sheet for Rs 7,300 crore fundraising through debt to the Monitoring Committee.
The Administrator of Reliance Capital has accused IndusInd International Holdings Ltd (IIHL) of failing to meet conditions set by the NCLT in its July 23 order. IIHL was supposed to deposit Rs 2,750 crore in designated escrow accounts but instead deposited the money in its own accounts and those of its promoters. The NCLT hearing on IIHL’s plea is scheduled for next week.
IndusInd International Holdings (IIHL), owned by the Hinduja Group, has been granted an additional 18 days by the National Company Law Tribunal (NCLT) to complete the necessary procedures for implementing its resolution plan for the bankrupt Reliance Capital. The tribunal has also mandated that IIHL deposit the equity component of Rs 2,750 crore in an escrow account by July 31. IIHL’s proposed funding for the resolution plan includes Rs 7,300 crore in debt financing and Rs 2,750 crore in equity.
The Hinduja Group’s acquisition of Anil Ambani’s debt-ridden Reliance Capital is facing a hurdle as the group struggles to raise funds to close the deal. IndusInd International Holdings Limited (IIHL), a subsidiary of the Hinduja Group, won the bid for Reliance Capital, but is facing challenges with securing loans due to high interest rates.
