Reliance Capital lenders urges IIHL to adhere to the resolution plan timeline, know more

The Hinduja Group company is required by the resolution plan to pay the Reliance Capital lenders an upfront sum of ₹9,650 crore.

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The lenders of the heavily indebted Reliance Capital (RCAP) have requested that IndusInd International Holdings Ltd (IIHL), a subsidiary of the Hinduja Group, speed the process of acquiring the required regulatory permissions and adhere to the May 27 deadline for resolution plans.

 

PTI reports that during a meeting on Friday, Reliance Capital’s lenders requested that IndusInd International Holdings pay ₹9,650 crore by the deadline. It should be recalled that the National Company Law Tribunal (NCLT)-Mumbai instructed the IIHL to carry out the resolution plan within ninety days, or by May 27, when it approved the plan on February 27.
Lenders are worried about the RCAP resolution plan’s delayed implementation because IIHL was unable to secure the necessary IRDAI approval, according to PTI.
Concerns have been voiced by the Insurance Regulatory and Development Authority of India (IRDAI) regarding the proposed corporate structure for the transfer of RCAP’s insurance companies to IndusInd International Holdings, specifically Reliance General Insurance and Reliance Nippon Life Insurance.

 

IIHL has not yet addressed those issues. The November 17 approval from the Reserve Bank of India (RBI) to transfer Reliance Capital’s business to IIHL is only good for six months, ending on May 17.

 

If IIHL is unable to conclude the resolution procedure within the allotted time frame, it must provide the RBI with an explanation when reapplying for clearance.

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