Reliance Capital Faces Scrutiny as IIHL Debt Mobilisation Sparks Creditor Concerns
Sunday, 25 August 2024, 16:14
Debt Mobilisation for Reliance Capital Acquisition
Lenders to Reliance Capital are increasingly troubled by the terms associated with IIHL’s proposed acquisition. The package includes a staggering Rs 7,300 crore debt tightly tied to the resolution plan that creditors must navigate.
Concerns Raised by CoC
- Funding Strategies: Creditors are questioning the sufficiency and reliability of proposed funding.
- Escrow Accounts: There are doubts about the transparency and management of escrow accounts involved.
- NCLAT's Oversight: The National Company Law Appellate Tribunal (NCLAT) plays a crucial role in ensuring fair proceedings.
Conclusion on IIHL Deal
The ongoing discussions around the Reliance Capital acquisition by IIHL represent a significant turning point. With the CoC's concerns echoing throughout the financial landscape, clarity on funding and debt terms will be paramount for the successful navigation of this deal.
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.