Saturday, September 23, 2023

Torrent blocks Rcap resolution, COC approves 90 day extension to full resolution

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Mumbai, the Committee of Creditors (COC) from Trust Capital approved the 90-day extension (from January 31 to April 30) to meet the Solution method.

Due to Torrent’s legal challenge, the administrator will apply for extension of the deadline in the NCLT Mumbai on Monday, January 16.

NCLT Mumbai will resume hearing in the Reliance Capital resolution issue on Monday.

In the hearing on Thursday, January 12, senior counsel Kapil Sibal appearing before RCAP’s COC, informed the court that the bid submitted by Torrent was non-compliant.

Sibal said COC found a discrepancy in Torrent’s resolution plan. The financial proposal submitted by the company in the draft decision does not match the highest bid submitted by them in the challenge mechanism.

Sibal said that after the administrator wrote to Torrent on Jan. 4, and then Torrent changed its entire offer on Jan. 6.

Sibal said Torrent doesn’t even make it past the third round threshold of the Challenge Mechanism. Therefore, it is non-compliant in the third round itself and could not participate in the fourth round.

Torrent’s bid in the second round was just Rs 7,500 crore which should be the company’s last bid while IIHL’s (Hinduja) all-cash bid of Rs 8,110 crore in the third round is higher than Torrent’s bid of Rs 7,500 crore.

Moreover, Hinduja’s IIHL is offering additional cash advance of Rs 900 crore, on top of the Rs 8,110 crore offer, to the lenders, and this higher realization cannot be denied to the lenders, including LIC and EPFO.

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