NCLT Grants Extension to IIHL for Reliance Capital Resolution

The National Company Law Tribunal extended the deadline for IndusInd International Holdings to implement the resolution plan for bankrupt Reliance Capital. IIHL has until August 10 to finalize the plan, and must deposit Rs 2,750 crore in equity by July 31. Funding involves Rs 7,300 crore in loans and Rs 2,750 crore in equity.

The National Company Law Tribunal (NCLT) has granted an extension to Hinduja Group-owned IndusInd International Holdings (IIHL) until August 10 to finalize the resolution plan for the bankrupt Reliance Capital. The tribunal, led by Justice Virendrasingh G Bist and Prabhat Kumar, instructed IIHL to deposit Rs 2,750 crore as equity in an escrow account by July 31.

IIHL plans to fund the resolution through a combination of Rs 7,300 crore in borrowing and Rs 2,750 crore in equity. Any cash available during the extended period will go to the Committee of Creditors (CoC), according to the NCLT's orders.

Earlier, on May 26, the tribunal approved IIHL's request for an extension of the May 27 deadline to pay Rs 8,000 crore for acquiring Reliance Capital. The group cited pending regulatory approvals as the reason for the extension. On June 29, 2023, lenders accepted IIHL's revised Rs 9,661-crore bid, which includes a Rs 500-crore cash balance from Reliance Capital, raising the total recovery to Rs 10,200 crore. However, a pending lawsuit from Torrent Group against the second e-auction remains unresolved in the Supreme Court.