Rel Cap’s auction put off to Jan 23

TNN
Mumbai: The auction for Reliance Capital (RCap) under the insolvency process, which was to take place on January 19, has now been scheduled for January 23. The counsel for the administrator of the bankrupt company informed the National Company Law Tribunal (NCLT) that, as the matter is currently being heard, the extension of auction will now happen on Monday.The committee of creditors (CoC) and the administrator of RCap are now describing the call for a fresh round of bids as an extension of the auction process on the grounds that the earlier bids were sub-optimal.
Torrent Investment, the highest bidder in the earlier round, claimed that the process was complete and banks should not consider the belated bid placed by IndusInd Holdings (part of Hinduja Group). It has also asked the court to restrain lenders from holding a fresh auction.
The counsel for the CoC, however, said that it was within rights in calling for new bids and equal opportunities was being given to all parties. Lenders have said that they believe that the asset to be worth much more than what the warring bidders have proposed to pay.
The main attraction for buyers of RCap is its 100% holding in Reliance General Insurance, which had close to a 5% marketshare. RCap also holds stake in Reliance Nippon Life Insurance. Nippon Life had earlier attempted to stymie lenders from selling RCap’s stake in the life company.