A lowdown on IIHL’s Rs 9,661 crore resolution plan for Reliance Capital
The resolution plan submitted by IndusInd International Holdings Ltd (IIHL) for Reliance Capital proposes to pay Rs 9,661 crore against the total admitted creditors’ claims of Rs 26,087 crore, which means a recover rate of 37%.
As per the resolution plan, secured financial creditors of Reliance Capital would receive Rs 9,248 crore, 42.73% of the admitted claims of Rs 22,123 crore. Unsecured creditors will receive Rs 128 crore against their admitted claims of Rs 3,223 crore. Related parties would receive Rs 286 crore against their total claims of Rs 735 crore.
Further, the cash lying with the Corporate Debtor shall be distributed among the Creditors in the same proportion as above. The cash lying with the Corporate Debtor as on September 8, 2023 is approximately Rs 285 crores.
Note: IIHL has proposed an amount net of Rs 50 crores for the benefit of the CoC and the same will form part of the upfront cash amount of the Resolution Applicant. Over and above this amount net of Rs 50 crores, the Resolution Applicant has proposed an amount net of Rs 11 crores for the benefit of the CoC and the same will be over and above the Upfront Cash Amount.
Timeline for implementation of the resolution plan
The Resolution Plan provides for the implementation of the terms thereof within a period of 90 days from the approval of the Resolution Plan by the Adjudicating Authority and receipt of certified copy of the order approving the Resolution Plan (NCLT Approval Date).
However, since the implementation of the Resolution Plan is subject to the satisfaction of the conditions precedent, the timeline of 90 days from the NCLT Approval Date will automatically stand extended by such number of days as are required for the satisfaction of the CPs.
Conditions for implementation of the resolution plan
In the event of occurrence of a Material Adverse Event on or prior to the NCLT approval date and remains continuing on the transfer date, IIHL will have the right to renegotiate or revise the payment obligations set out in the Resolution plan and approach the NCLT with such revised terms and the period during which the MAE subsists will be excluded from any timelines including payment timelines and the timelines will stand extended by such MAE period.
Upon the implementation of the IIHL Resolution Plan, clear title of shares of Reliance General Insurance Company Limited will be handed over to IIHL.
Receipt of RBI approval in respect of the change in control of the Corporate Debtor, the change in sponsor of Reliance Asset Reconstruction Company Limited, and any other requirement under Applicable Laws.
Receipt of IRDAI Approval in respect of change in control of Reliance General Insurance Company Limited, Reliance Health Insurance Limited, Reliance Nippon Life Insurance Limited, and any other requirement under Applicable Laws.
Receipt of SEBI Approval in respect of the change in control of the Corporate Debtors, Reliance Securities Limited and other entities; and any other requirement under Applicable Laws.
Receipt of CCI Approval for the acquisition of the Corporate Debtor and in respect of any other steps contemplated as a part of the IIHL Resolution Plan.
Details of the resolution applicant
The resolution applicant — IndusInd International Holdings Limited — is a public company incorporated in Mauritius and is regulated by the Financial Services Commission of Mauritius. IIHL is set up by a group of high net-worth individuals and the principal activity of IIHL is investment holding whereby IIHL holds shares in different companies spread across sectors.
Also See: NCLT approves Rs 9,661 cr IIHL resolution plan for Reliance Capital
