In accordance with the Insolvency and Bankruptcy Code (IBC), the administrator must close the RCL resolution within 180 days, i.e. before June 3, 2022.
Once the 90-day extension is taken, the CoC will have until September 3 to complete the process.
Adani Finserve, ICICI Lombard, Tata AIG, HDFC Ergo and Nippon Life Insurance are among 54 companies that have expressed interest in acquiring NBFC.
According to sources, the CoC at its meeting also discussed the request for a 90-day extension, with the majority of lenders favoring extending the deadline for closing the resolution process.
The final decision will be made at the next meeting, sources added.
The Reserve Bank of India (RBI) had, on November 29, replaced the board of directors of Reliance Capital Ltd (RCL) due to payment defaults and serious governance problems.
The RBI has appointed Nageswara Rao Y as administrator under the company’s Corporate Insolvency Resolution Process (CIRP).
It is the third major non-bank financial company (NBFC) against which the central bank has recently initiated bankruptcy proceedings under the IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
RBI then filed a CIRP application against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).
In February this year, the RBI-appointed administrator had invited Expressions of Interest (EOI) for the sale of Reliance Capital.
In September, RCL at its annual general meeting informed shareholders that the consolidated debt of the company was Rs 40,000 crore. It had reported a reduction in its consolidated net loss to Rs 1,759 crore in the quarter ended December 2021.
The company had recorded a net loss of Rs 3,966 crore in the same quarter a year ago. However, the net loss widened from Rs 1156 crore in the previous quarter ended September 2021.
The company’s total revenue stood at Rs 4,083 crore in Q3FY22, compared to Rs 4,890 crore in Q3FY21.
RCL was incorporated on 5th March 1986 and is registered as a Non-Banking Financial Company-Core Investment Company-Non-Deposit Taking-Systemically Important (NBFC-CIC-ND-SI) under the Reserve Bank of India Act, 1934 .