The secured lenders of Reliance Capital have moved the National Company Law Appellate Tribunal seeking to modify the tribunal’s order to include interest on the delayed payment by Hinduja Group-owned IndusInd International Holdings (IIHL).
The committee of creditors of Reliance Capital is also seeking the appellate tribunal’s intervention to modify the lower tribunal’s order and allow forfeiture of the ₹2,750 crore in the event of a default by the Hinduja Group company. IIHL has deposited ₹2,750 crore in the CoC’s designated account.
The lenders’ move comes after the Mumbai bench of the National Company Law Tribunal (NCLT) in July allowed the successful bidder IIHL’s application for an extension to implement the resolution plan.
“The NCLT ought not to have granted an extension of time to IIHL for implementation of the resolution plan, without adequately compensating the CoC by grant of interest at a rate not less than the all-in financing cost (effective yield) payable to the financiers by IIHL,” argues the CoC in its petition, a copy of which ET reviewed. Now, the CoC has sought the appellate tribunal’s intervention to also direct the Hinduja Group entity to pay interest at the rate of 16.65% from May 27 to August 8, 2024, on the entire amount.
Email queries to CoC and IIHL remained unanswered till press time. On July 23, NCLT directed IIHL to deposit equity amount of ₹2,750 crore into escrow account by July 31. Tribunal clarified the Hinduja-owned company has to submit copies of binding executed term sheets for loan amount of ₹7,300 crore to monitoring committee for acquisition of Reliance Cap through the bankruptcy process.
Source: Economic Times