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New Delhi : Lenders have postponed the second round of auction of debt-ridden Anil Ambani’s Reliance Capital (RCL) to be held on Tuesday. According to media reports quoting sources, the Committee of Creditors (CoC) had scheduled the second online auction for RCL on April 11, but it has been postponed for the time being. However, no decision has been taken about the new date yet. Earlier, last week also the second round of auction was postponed till April 11.
The first round of auction was held in December
According to sources, Hinduja Group company IIHL, Torrent Investments and Singapore’s Oaktree have confirmed participation in the second round of auction. Earlier, an online auction was held in December for the sale of Reliance Capital, in which Torrent Investments was the highest bidder. At the same time, IIHL, which came in second place, made a revised bid after the auction, which has been challenged in the Supreme Court. On November 29, 2021, the Reserve Bank of India dissolved the board of directors of Reliance Capital and appointed Nageswara Rao Y as the administrator.
IIHL had amended the bid
According to a media report, Hinduja Group company IIHL had earlier made a bid of Rs 8,110 crore, which was later revised to Rs 9,000 crore. However, sources say that both the bidders are not willing to participate in the second round of auction. Torrent has informed the Committee of Creditors (CoC) about this. At the same time, IndusInd International Holdings Limited (IIHL) has also expressed its intention to withdraw its revised bid of Rs 9,000 crore. In such a situation, the CoC’s plan to conduct a second auction with a base price of Rs 9,500 crore seems to be in jeopardy.
Cosmi Financial and Piramal seek return of earnest money
Meanwhile, there is also news that the alliance of Cosmi Financial and Piramal has written a letter to the administrator of Reliance Capital, demanding the return of the earnest money of Rs 75-75 crore deposited in November. Both the companies have said that they no longer want to participate in the debt resolution process. Sources say that Reliance Capital is moving towards liquidation if there is no consensus to remove the deadlock. It is estimated that the lenders of the company can get Rs 13,000 crore on liquidation.
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