Lenders of Reliance Capital told the National Companies Law Tribunal that they are losing £4.2 million each week and that the insolvency resolution for the company is taking longer than expected.
The lender’s complaint was mentioned in the order by the NCLT Mumbai, which rejected Torrent Investment’s plea seeking a stay on the approval of the resolution plan for Reliance Capital based on the winning bid by Hinduja’s IndusInd Holdings. The order is a positive for IndusInd Holdings, whose bid for Reliance Capital has been accepted by lenders.
Torrent’s main objection was to the way the lenders conducted the challenge mechanism, where rivals are allowed to outdo the winning bidder. The winning bid was presented by IndusInd after the creditors' deadline. In order for the Supreme Court to make a final judgment about the challenge mechanism, Torrent had asked for a stay of the resolution plan's approval.