Hindujas-promoted IndusInd India Holdings has deposited Rs 2,750 crore in the escrow account opened by the committee of creditors of Reliance Capital on the direction of the National Company Law Tribunal.
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In an affidavit filed with the NCLT, the company stated that it had transferred Rs 250 crore to the onshore account nominated by the CoC and another amount of US$ 298 million, equivalent to over Rs 2,500 crore, to the offshore account nominated by the CoC as equity contribution to the corporate debtor.
In addition, the company submitted binding undertakings and terms sheets for the debt portion of Rs 7,300 crore to the SC at its meeting on August 8.
The affidavit directed the administrator and the CoC to initiate steps to implement the resolution plan approved by the NCLT and directed the authorities to appoint a trustee to carve out the excluded assets from the corporate debtor and provide a detailed list of creditors and their distribution breakdown to clarify to whom the transfers are to be made under the resolution plan.
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IIHL wants CoC to fix the effective date for delisting of the NCDs and ordinary shares of Reliance Cap and to submit the applications for delisting of the NCDs and ordinary shares of Reliance Cap to the regulator.
In addition, the share capital of Reliance Cap needs to be reduced and the International Securities Identification Number cancelled to make the capital reduction effective. It also needs to provide the bank account details into which the unpaid CIRP costs are to be transferred as per the reorganization plan.
IIHL listed out the necessary orders to be passed by the NCLT and stated that if the orders are not passed by the NCLT, the applicant along with the Administrator and the CoC would face inexplicable challenges in implementing the resolution plan.
However, if the NCLT’s directions are not followed, IIHL will suffer severe and irreparable loss and damage, resulting in the reorganization plan not being implemented jointly with the administrator and the committee of creditors, the affidavit said.
Last Thursday, the NCLT asked IIHL to deposit Rs 2,750 crore in the escrow account opened by the CoC and adhere to the resolution plan for Reliance Capital before August 10.
In November 2021, the RBI removed the board of Reliance Capital due to governance issues and defaults at the Anil Dhirubhai Ambani Group company. In February, the NCLT approved IIHL’s recovery plan for Reliance Capital.