Reliance Capital’s lenders have hired KPMG as their process adviser and L&L Partners as their legal advisers
- ByStartupStory | February 8, 2022
Two persons familiar with the situation informed ET that lenders to Reliance Capital have retained KPMG India as their process adviser and Luthra & Luthra Partners as their legal counsel to help manage the obstacles inside the settlement of Anil Ambani-promoted Reliance Capital. Last week, the committee of creditors (CoC) argued whether Reliance Capital should be sold as a unified entity or whether its subsidiaries should be auctioned individually.
Nageshwara Rao, the RBI’s designated administrator, informed lenders last week that a core committee had been created, consisting of IDBI Trusteeship Services Ltd, Vistra ITCL, IndusInd Bank, Mazson & Developers Pvt Ltd, and Assets Care & Reconstruction Enterprises (ACRE). Ares SSG Capital has supported ACRE, an asset reconstruction firm.
Reliance Capital, which is in bankruptcy, has confirmed claims totalling Rs 23,666 crore. According to the persons stated above, lenders are looking to recoup at least Rs 7,000-8,000 crore by selling an equity share in the twenty-odd subsidiaries and five affiliate firms.
A firm can only be sold in parts if it is under liquidation after a scheduled settlement procedure fails, according to the Insolvency and Bankruptcy Code (IBC). One of the people suggested that in this scenario, the administrator could need the bankruptcy court’s permission to sell subsidiaries separately. ET’s query was not answered by the administration. KPMG did not respond to a request for comment.
RBSA Advisors and Duff & Phelps have also been appointed by the administrator to offer fair market value and liquidated value for the insolvent core investment business. As previously reported, Deloitte will be the process adviser and AZB & Partners will become the legal representative for the administrator.
According to disclosures posted on the company’s website, the administrator has acknowledged the greatest claim by Life Insurance Corporation (LIC) at Rs 3,485 crore, trailed by a separate claim from LIC Pension and Group scheme at Rs 1,539 crore. Yes Bank, for example, has an accepted claim of Rs 1,344 crore.
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