Reliance Cap Insolvency: Lenders Continue Process Despite IIHL’s Extension Request — Here’s Why

On the other hand, lenders believe that they should not throw the baby out with the bath water; in this case, they would like to wait and watch how the proceedings go, according to a person with knowledge of the matter who spoke on condition of anonymity exclusively with NDTV Profit.

Since the winning bidder has demonstrated they have the funds ready, lenders believe that fighting this case is more appropriate than ending the entire proceeding, the person said.

Despite this, lenders have decided against immediate action. They have instructed their lawyers to await the upcoming hearing and decision, confident that IIHL possesses the necessary funds to continue with the proceedings.

NDTV Profit has seen a copy of the application filed by IIHL.

The application seeks a modification to the July 24 order due to challenges in meeting compliance deadlines. The application highlights concerns that the current conditions set by the tribunal are unmanageable within the given timelines.

According to the tribunal's earlier directive, IIHL was required to deposit Rs 250 crore into an Indian escrow account for domestic equity and an additional Rs 2,500 crore into an offshore escrow account for foreign equity, pending government approval.

Further, IIHL was obligated to provide copies of executed term sheets for a Rs 7,300 crore loan, which was to be disbursed to a designated account before the extended deadline. The disbursement was contingent upon receiving approval for the foreign equity component. IIHL was also required to submit an affidavit confirming compliance with these obligations by July 31.

They also seek to specify that the Rs 250 crore deposit be made into an account—IIHL A/c. RCAP.

IIHL requests additional conditions for the offshore escrow account, including approvals from the RBI for changes in control, pledging securities, and foreign equity.

They also want to finalise the trustee, provide a list of creditors and their payments, set a record date for delisting securities, and complete regulatory forms related to share capital reduction.