The RFRP was approved by the Committee of Creditors (CoC) of RCL in its meeting held on Wednesday, sources said. The document will be placed before the CoC for final approval next week.
As per the RFRP, sources said, the consortium cluster bidders have to submit bids on an all-cash basis, but it gives an option to the bidders at the company level to put in bids either on an all-cash or deferred payment basis.
The CoC has also decided to seek 3 months’ extension for the completion of the the Corporate Insolvency Resolution Process (CIRP), sources said, adding voting on the proposal will take place in next week’s meeting. After the 90-day extension, the resolution needs to be completed by September 3.
The RFRP will reduce competition as no single company can bid for an individual cluster like Reliance General Insurance or Reliance Life Insurance. Key clusters of RCL are Reliance General Insurance, Reliance Health Insurance, Reliance Nippon Life Insurance, Reliance Asset Reconstruction, and Reliance Securities.
During the meeting, as per a statement by RCL, the administrator appraised the CoC about the status of claims, status of CIRP process, RFRP document, going concern operations of the firm, filing of extension of 90 days and the way forward in terms of the activities as stipulated under the Insolvency and Bankruptcy Code (IBC).
The RBI had on November 29 last year superseded the board of Reliance Capital in view of payment defaults and serious governance issues.