RCap lenders to decide on bids today

Mumbai: The committee of creditors (CoC) of Reliance Capital (RCap) will meet on Tuesday to discuss fresh resolution plans submitted by Torrent and Hinduja groups under the bankruptcy process. According to sources, an immediate decision is unlikely as Torrent Group has threatened legal action if creditors consider any bid after the completion of the process.
Torrent Group had emerged as the highest bidder in an e-auction conducted by the lenders where they sought challenger bids to an earlier round where the Piramal-Cosmea combine had emerged the top bidder.Piramal-Cosmea had kept away from the challenger round, objecting to the lenders’ move to hike the base price arbitrarily.
In the challenger round, Torrent submitted a resolution plan with a net present value (NPV) of Rs 8,640 crore, while Hinduja’s NPV was Rs 8,110 crore. After the auction, Hinduja submitted a revised resolution plan with an NPV of over Rs 9,000 crore. In the past, creditors have accepted offers made after the bidding process but before the voting.