Credit Suisse (CS) has written to the administrator of Reliance Capital, stating that a resolution plan for the company cannot be implemented as the Swiss lender’s petition against the rejection of its claims on RCap is still pending with the National Company Law Tribunal.
CS, through their lawyers, have written to the administrator of RCap, Nageswara Rao, informing him about their claim for a debt of £66 million.
Following the rejection of the two lenders' claims in the bankruptcy case, CS and Axis Bank filed a motion with the tribunal last year. Both lenders had wished to be acknowledged as creditors. The overall debt, according to the notice from the CS lawyer, is £66 million as of December 2021.
CS has claimed it is a secured creditor with a pledge on the bankrupt company’s shares in its subsidiary, Reliance General Insurance, with IDBI Trusteeship company being a trustee. The notice states there have been reports of a second round of auction on April 26, where IndusInd International Holdings has emerged as the sole bidder, and discussion regarding the finalisation of the resolution plan is underway.
The administrator has been instructed by CS to hold off on even discussing the resolution plan, let alone finalising it. According to the notification, the resolution plan's completion while a decision was pending would constitute a complete failure to comply with regulation 38 of the corporate insolvency resolution plan regulation.