Torrent Revises Its Offer For Reliance Capital But Falls Short Of Expected Price
It has revised its upfront payment from Rs 3,750 crore to Rs 8,640 crore
In a turn of events on Friday, Torrent Group shockingly revised its resolution plan for Reliance Capital.
It has revised its upfront payment from Rs 3,750 crore to Rs 8,640 crore. Torrent had earlier accused IIHL of revising their resolution plan.
The move is seen as a gross violation of the RFRP and the Challenge Mechanism.
However, Torrent’s alleged all cash bid of Rs 8,640 crore is still lower than IIHL’s Rs 9,000 crore plus all cash bid for Reliance Capital.
Earlier this week on Tuesday, Torrent got an interim stay from NCLT, Mumbai as the committee of creditors (COC) discussed the resolution plans of the bidders.
Financial advisors, Deloitte and KPMG had observed that the upfront cash of Torrent was only Rs 3,750 crore, as against IIHL’s Rs 9,000 crore.
Legal advisors, AZB & Partners for the administrator and Luthra & Luthra for the COC, observed that Torrent and IIHL resolution plans are legally non-compliant with the IBC and other laws.