Anil Ambani’s Reliance Big sold to ACME Group founder for Rs 3.5 crore
The financial creditors of would take a 99.5% haircut in the resolution of erstwhile Anil Ambani-promoted Reliance Big Private Limited’s insolvency case. The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the resolution plan submitted by Manoj Kumar Upadhyay through his affiliate firm ACME Cleantech Solutions Private for the revival of Reliance Big Private Limited.
As per the resolution plan, the secured financial creditors of the Reliance Big would receive a sum of Rs 3.5 crore against their total admitted claims of Rs 484 crore. The resolution plan does not offer any money to unsecured financial creditors who had submitted total claims of Rs 515 crore. The plan also includes the issuance of non-convertible debentures worth Rs 3.50 crore, which will later be converted into equity shares. The resolution plan, approved by a 100% majority of the Committee of Creditors (CoC), also entails an upfront cash infusion of Rs. 4 crore in the form of equity. The corporate debtor owed Rs 999 crore to financial creditors.
Reliance Big Private Limited, a company engaged in radio and television activities including production of radio and television programmes, was admitted into the Corporate Insolvency Resolution Process (CIRP) in August 2023 following a default in maintaining security cover for its debenture obligations. Axis Trustee Services Limited, acting on behalf of Franklin Templeton Asset Management (India) Private Limited, was the primary secured financial creditor in the case.
During the insolvency process, the resolution professional received multiple Expressions of Interest (EOIs), but ultimately, only one resolution plan was formally submitted and considered viable. The plan underwent several modifications based on CoC feedback before receiving final approval.
A key aspect of the resolution plan includes the restructuring of inter-se distribution between secured and unsecured financial creditors. Initially set at an 80:20 ratio, the distribution was later revised to a 92:08 split in favor of secured creditors. The resolution plan also ensures that operational creditors receive payments in priority over financial creditors, as per the Insolvency and Bankruptcy Code (IBC) guidelines.
With the NCLT’s approval, the implementation process will commence under the supervision of a Monitoring Committee, which will oversee the transition and fulfilment of financial obligations. The plan further includes provisions for business continuity, regulatory compliance, and a merger scheme involving the implementing entity.
The approval marks the final phase of a complex insolvency resolution process, providing relief to stakeholders and paving the way for the revival of Reliance Big Private Limited. The successful implementation of the plan will determine the company’s future sustainability and its contribution to the renewable energy sector.
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