New Delhi: Concerned over slow progress, the lenders of debt-ridden Reliance Capital (RCAP) have asked the Hinduja Group arm, IndusInd International Holdings Ltd, to expedite the process of obtaining necessary regulatory approvals and stick to the resolution plan deadline of May 27.
In a meeting held in Mumbai on Friday with the senior officials of IndusInd International Holdings’ (IIHL), the lenders of RCAP said the company has to make a payment of Rs 9,650 crore to them by the said date, a source said.
It is to be noted that the National Company Law Tribunal (NCLT) Mumbai, while approving the resolution plan on February 27, directed the IIHL to implement the resolution plan within 90 days i.e. May 27.
As per the approved resolution plan, IIHL has to make an upfront payment of Rs 9,650 crore to the RCAP lenders.
According to the sources, the lenders expressed concerns over the slow progress towards the implementation of RCAP resolution plan, as IIHL is yet to receive the crucial IRDAI approval on the resolution plan.
The IRDAI has raised multiple queries and concerns over the proposed corporate structure for the transfer of RCAP’s insurance businesses to IIHL, and the company is yet to address those concerns.
IRDAI approval is crucial for the transfer of insurance businesses of Reliance Capital i.e. Reliance General Insurance and Reliance Nippon Life Insurance, to the IIHL.
The RBI approval on transfer of RCAP business to IIHL also ends on May 17.