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The Committee of Creditors (CoC) of Reliance Capital will meet on Friday to finalise the e-auction process of debt resolution in a bid to enhance the overall recovery.
The lenders can either opt for ascending auction or descending auction. Some of the foreign banks on the CoC are in favour of a descending auction under which the base price will be ₹17,000 crore as determined by the independant valuer.
In the ascending auction process, the base price will be ₹5,300 crore which is the highest bid value quoted by Cosmea and Piramal consortium in the last round of bidding. LIC and EPFO are in favour of this model, sources said.
Lenders’ vote
In the meeting held on Tuesday, the lenders voted in favour of holding an e-auction after the initial round of bidding was 70 per cent lower than the liquidation value. Cosmea-Piramal consortium, Hinduja, Oaktree and Torrent Group are among the players who are interested in acquiring RCap’s assets.
However, Oaktree could exit the race after the lenders rejected two requests from the asset management firm. Sources said Oaktree had sought Reliance Capital’s financial results till December 31, 2022, followed by a four-week extension, till January 31, 2023, for conducting the auction process.
As per the NCLT order, lenders have to complete the resolution process of Reliance Capital by January 31, 2023.
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