Reliance Capital Crisis: Committee of Creditors Raises Concerns Over ₹7,300 Crore Debt Plan from Hinduja Group
Reliance Capital Creditors Express Concerns
The Committee of Creditors (CoC) for Reliance Capital has flagged several issues with the term sheets submitted by IndusInd International Holdings Ltd (IIHL), linked to the Hinduja Group. The proposed debt raise of ₹7,300 crore raises alarms due to stringent conditions outlined.
NCLT Involvement and Required Documentation
Earlier this month, the National Company Law Tribunal (NCLT) instructed IIHL to submit the necessary term sheets to creditors as a part of the resolution plan. Although IIHL agreed to this requirement, complications have arisen from delays and concerns regarding the execution of these agreements.
- Creditors' Concerns: The CoC's biggest worry centers around the conditions attached to the funding, many of which are contingent upon the already stalled execution of the resolution plan.
- Funding Conditions: Key conditions demand significant actions from IIHL, including equity pledges and shareholding transfers.
- Need for Clarity: Creditors are requesting definitive documents from IIHL to better understand the strings attached to their substantial financing proposal.
Future Implications for Reliance Capital
As IIHL seeks to raise this huge sum—split between 360 One and Barclays—creditors are increasingly anxious. Any default from IIHL could have severe implications, including the forfeiture of a crucial equity component valued at ₹2,750 crore.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.