RCap buyout: IIHL-lenders at loggerheads over compliance of NCLT order

Hindujas promoted IndusInd International Holdings has claimed that it has deposited requisite capital infusion of ₹2,750 crore in its bank accounts towards its equity contribution for acquisition of Reliance Capital.

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Denying the committee of creditors claim on Friday that it has not complied with the NCLT order of July 23, IIHL said it is in compliance of its obligations under the resolution plan as approved by the NCLT.

IIHL has deposited the requisite capital infusion ₹2,750 crore in its bank accounts towards its equity contribution. An affidavit to this effect along with bank certificates has been filed with NCLT on July 31. A copy of which has been served to the committee of creditors (CoC) and the administrator, it said.

The affidavit also clarifies that IIHL has obtained binding commitment letters and executed term sheets for ₹7,300 crore, said IIHL.

It is pertinent to note that the original order approving the resolution plan dated February 27 categorically required the committee of creditors and the administrator to complete certain actions and conditions for which a meeting was held with them on 29th July 2024.

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These actions and compliances as required are yet to be fulfilled and this has resulted in IIHL approaching NCLT by filing an interim application seeking specific directions and also modifications to their order of July 23, said the company in a statement.

Pending the hearing of the filed application and subject to the modification of the order, IIHL has, in compliance of its obligations under the resolution plan, deposited the full equity contribution of ₹2,750 crore.

However, the CoC claimed that the company was given an option to communicate details of IIHL accounts which may be designated as CoC designated account on July 26 and July 30.

However, no such details were provided to the CoC and the executed term sheets have also not been provided to the Monitoring Committee, it said.

In view of the default of the NCLT order by IIHL, the rights and remedies of the CoC, in law and equity are expressly reserved, it added.