Hinduja Group-backed IndusInd International Holdings (IIHL) filed an intervention application on Tuesday before the Mumbai bench of the National Company Law Tribunal (NCLT). The application states that while IIHL is prepared to pay Rs 2,750 crore as initial capital to acquire bankrupt Reliance Capital (RCap), certain requirements within the resolution plan, approved by the RCap lenders, have yet to be fulfilled, according to sources.
Sources indicate that IIHL proposes to fund the resolution plan through Rs 7,300 crore in borrowings from lenders and Rs 2,750 crore in equity. It has already secured arrangements with lenders.
In an email communication from IIHL’s CEO, Moses John, to RCap administrator Nageswara Rao, IIHL emphasized the need to complete multiple action points before transferring the amount to the escrow account. John urged both sides to coordinate and finalize the formalities promptly.
Some of the requirements include the finalization and appointment of the trustee for carving out excluded assets from Reliance Capital, the list of creditors and their payment distribution breakdown, the record date for delisting equity shares and NCDs of Reliance Capital, the application for delisting equity shares and NCDs, formalities for reducing the share capital of Reliance Capital, the escrow agreement for creating an escrow account, and resolving outstanding GST issues.
Last week, NCLT extended the deadline for IIHL to complete the formalities for implementing the RCap resolution plan until August 10, according to news agency PTI. The tribunal directed IIHL to deposit Rs 2,750 crore in the escrow account by July 31. IIHL had already deposited Rs 500 crore as an initial commitment to acquire RCap when it emerged as the highest bidder for the company.
