Reliance Capital lenders to meet on Monday to resolve concerns of bidders

New Delhi, April 23 (IANS) The lenders of Reliance Capital (RCap) will meet on Monday to resolve concerns raised by bidders ahead of the second round of auction on April 26.

Torrent Investment and IndusInd International Holdings Ltd (IIHL) of Hinduja Group have expressed many reservations on the scheduled auction and its terms.

Both the bidders reportedly have conveyed to the Committee of Creditors (CoC) that unless the issues raised by them are resolved, they are unlikely to participate in the auction.

Both the bidders want finality, and no negotiation in value or on terms and conditions after the second round of auction is over.

On the other hand, the two largest lenders of Reliance Capital -- the Employees' Provident Fund Organisation (EPFO) and the LIC are against giving any such undertaking.

Both lenders want to room for further negotiations in case the final bid value in the second round of auction is below the liquidation value of Rs 13,000 crore. The EPFO and the LIC collectively hold over 30 per cent voting rights in the COC.

The IIHL has said that the bidders who are participating in the auction should give an undertaking that they will not give a bid outside the Challenge Mechanism process. Similarly, bidders also want an undertaking from the CoC that no bid outside the Challenge Mechanism will be considered by them.

Torrent has requested to declare after every round how many bidders are participating in the next round and the value of their bids.

The Mumbai-bench of National Company Law Tribunal (NCLT) has extended the deadline for completing the resolution process of RCap by three months to July 16.