Earlier, the creditors extended the timeline by 90 days to September 2, 2022, from June 3. Notably, the administrator had to close Reliance Capital's resolution within 180 days by June 3, as per the Insolvency and Bankruptcy Code (IBC) rules.
Further, the creditors also decided to extend the deadline for submission of the resolution plan by the prospective bidders to July 11 from June 20 this year.
Sources told PTI that the deadline for the resolution plan submission has been extended as a few prospective bidders had written to the administrator seeking more time for the submission.
According to the sources, Piramal Enterprises had asked the deadline to be extended to August 10, while IndusInd Bank had asked for the timeline extension to July 15.
Thereby, the sources told that the timelines for resolution process completion and resolution plan submission have been extended due to the cold response from the bidders.
Notably, from around 54 expressions of interest (EoI) received initially, the sources told the news agency that now only a handful of bidders are engaged with the administrator.
They also pointed out that the lenders had given only two options to the bidders. Firstly, bidders were allowed to acquire Reliance Capital along with its eight subsidiaries.
Companies like Piramal Enterprises, Yes Bank, and Torrent Group have opted for the first option.
Secondly, bidders can also submit resolution plans even for a single subsidiary.
Under the second option, for the company's general insurance cluster, Zurich Insurance has shown interest, while Cholamandalam Group was interested in the Life Insurance arm.
RBI-appointed Nageswara Rao Y is the administrator of Reliance Capital's Corporate Insolvency Resolution Process (CIRP).
Reliance Capital has a consolidated debt of about Rs40,000 crore. RBI had applied to initiate CIRP against the Reliance Group company at the National Company Law Tribunal (NCLT) Mumbai bench.
Subsidiaries of Reliance Capital under insolvency resolution are - Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance, and Reliance Commercial Finance.
Reliance Capital would be the third NBFC against which RBI has initiated bankruptcy proceedings under the IBC recently. Srei Group NBFC and Dewan Housing Finance Corporation (DHFL) were the other two NBFCs.
On BSE, Reliance Capital shares closed at ₹12.42 apiece up by 1.22%.
