Corporate Grapevine     

Published: July 31, 2024
Updated: July 31, 2024

Hindujas’ ‘Shylockian’ terms for Reliance Cap

After its Rs 10,000 crore bid to buy Reliance Capital, the Hinduja group is in two minds on whether to buy the company earlier owned by Anil Ambani. In a new letter to the banks, the Hindujas have asked for several conditions which need to be met by the lenders before they can remit even a single penny for the acquisition.

Hindujas’ IIHL says it is ready to pay its equity contribution of Rs 2,750 crore, but the CoC (committee of creditors) and the Administrator need to comply with their obligations as listed in the Resolution Plan. IIHL has filed an intervention application before NCLT Mumbai and has written a letter to the Administrator and CoC stating that it is ready to pay Rs 2,750 crore.

IIHL has asked the court-appointed Administrator and the lenders to implement certain requirements that were part of the resolution plan and were approved by the CoC itself, which are pending as on date. These include: Finalization and appointment of the trustee for carving out the assets that are excluded from Reliance Capital; list of the creditors and their distribution break-up as to whom payment has to be made; record date for delisting of equity shares and NCDs of Reliance Capital; application for delisting of equity shares and NCDs of Reliance Capital; formalities for reduction of the share capital of Reliance Capital; Escrow Agreement for creation of an Escrow Account; outstanding issue of GST, etc.

With so many preconditions, one wonders whether the Hindujas are serious about acquiring the company.