Reliance Capital Limited updates on resolution plan for Reliance Commercial Finance Ltd

The Board of Directors of Reliance Commercial Finance Limited (RCF) took note of the resolution plan approved by the Lenders forming part of the Inter-Creditor Agreement (ICA Lenders) under RBI's Prudential Framework for Resolution of Stressed Assets, Directions dated 07 June 2019 ("RBI Directions").

RCF is a wholly owned subsidiary of Reliance Capital Limited.

Lenders selected Authum Investment and Infrastructure Limited (Authum) as the successful Bidder to acquire the Company and/or all its' assets through a competitive bidding process after several rounds of negotiations between the bidders and the Lenders.

Authum's debt resolution plan is approved under RBI's Prudential Framework for Resolution of Stressed Assets, Directions dated 07 June 2019 ("RBI Directions").

The ICA Lenders with Bank of Baroda as the Lead Bank have received initial Expression of Interest from over 18 bidders, of which 4 binding bids were shortlisted and the final successful bidder was selected.

The implementation of the resolution plan by the successful bidder is subject to approval of non-ICA Lenders, shareholders, regulatory authorities and, vacation of existing legal injunctions on the Company.

Shares of RELIANCE CAPITAL LTD. was last trading in BSE at Rs.19.95 as compared to the previous close of Rs. 20.05. The total number of shares traded during the day was 436929 in over 1387 trades.

The stock hit an intraday high of Rs. 20.5 and intraday low of 19.75. The net turnover during the day was Rs. 8783931.

Source : Equity Bulls

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