Anil Ambani-led Reliance Capital, which just lately defaulted on repayments to its debenture holders and different collectors, has begun the process for monetisation of its belongings, market sources stated.
The key belongings of Reliance Capital embody Reliance Securities, Reliance Health and Reliance General Insurance Company.
Other belongings embody Reliance Nippon Life Insurance, which is a 51:49 three way partnership with Nippon Life, and Reliance Capital’s 49 per cent stake in Reliance Asset Reconstruction Company.
The market sources stated Reliance Capital has begun its monetisation plan and expression of curiosity (EoI) by the trustee — Vistra — can be issued this week.
The decision applicant can bid for controlling shareholding in Reliance Capital, or particular person belongings or any mixture of belongings.
When contacted, a spokesperson of Reliance Capital declined to remark.
Reliance Capital’s debenture holders signify 99 per cent of the corporate’s complete debt of Rs 15,000 crore.
The committee of debentures holders, which is led by EPFO and LIC, has appointed SBI Capital and JM Finance for fast-track decision and monetisation.
In July, the corporate had stated it has defaulted in repayments to lenders and debenture holders and incurred losses through the June quarter, which point out that materials uncertainty exists which will forged a major doubt on the corporate’s capacity to proceed as a going concern.
“The company is in the process of meeting its obligations by way of time bound monetisation of its assets in cognisance with debenture trustee and debenture holders and accordingly the financial results of the company has been prepared on going concern basis,” it had stated.
Reliance Capital has an publicity by the use of loans, investments and ensures in Reliance Commercial Finance and Reliance Home Finance aggregating to Rs 4,954 crore excellent as on June 30, 2020.
“The lenders of these companies have entered into Inter-Creditor Agreement (ICA) for the resolution of their exposure… on Prudential Framework for Resolution of Stressed Assets. Both the entities are progressing on implementing their resolution plans under ICA, which is valid till September 30, 2020,” it had stated.