Torrent will seek a stay on voting by Committee of Creditors (CoC) members to approve the second round of the Challenge Mechanism
The move comes after Reliance Capital’s lenders proposed holding a fresh auction next week at a minimum bid threshold of Rs 9,500 crore.
Torrent will seek a stay on voting by Committee of Creditors (CoC) members to approve the second round of the Challenge Mechanism.
Torrent is not in favour of having a second Challenge Mechanism in the Reliance Capital resolution process and wants the CoC to approve it all cash bid of Rs 8,640 crore.
Last week, Torrent had got an interim stay from NCLT against IndusInd International Holdings Limited’s (IIHL) revised bid of Rs 9,000 crore.
Torrent moving NCLT to stop the second round of the Challenge Mechanism could delay the Reliance Capital resolution process. The NCLT has set 31 January as the deadline to complete the resolution process of the Anil Ambani-founded financial services firm.
CoC sources tell that Torrent’s move is unwarranted and unjustified and accuse Torrent of stalling the resolution process.
They say that is unfortunate that even after a week of NCLT granting stay on Torrent’s appeal against Hinduja’s revised bid, the Administrator has not yet moved NCLT against the order.
LIC and EPFO have a combined exposure of Rs 7000 crores in the Reliance Capital. Both will be the biggest beneficiary of the higher realisation from the Reliance Capital resolution process.
Torrent will be represented by Senior Advocate Mukul Rohtagi and Senior Advocate Darius Khambata in the NCLT on Monday.