The administrator and committee of creditors of Reliance Capital have agreed to release bank guarantees of three bidders, but the guarantee of the Torrent Group will only be released after seeking legal opinion due to a case before the Supreme Court.
The three bidders, Oaktree Capital, Piramal Enterprises, and Cosmea Financial Holdings, did not participate in the extended challenge mechanism or the second e-auction, citing lack of clarity in the process.
They had requested assurance of finality in the insolvency process before placing bids. The CoC of Reliance Capital could not incorporate a finality clause in the second e-auction, which was opposed by the company’s largest lenders. Torrent Group’s bank guarantee will be released later pending the legal opinion on their case before the Supreme Court.
Typically, bank guarantees are released within 14 days of regulatory approvals in bankruptcy proceedings. The resolution plan submitted by IndusInd International Holdings was approved by the Mumbai bench of the NCLT on February 27.
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