Reliance Capital’s resolution has received tepid response as only four firms have made financial bids for the entire company, including its subsidiaries, under the insolvency process. When the resolution process began, over 50 firms had submitted Expression of Interest for various assets, but only a handful of bidders were engaged. The bids have to be approved by a lender’s committee.
Against this backdrop, Mukesh Chand, Senior Counsel at Economic Laws Practice (ELP) was quoted by the Business Standard. He says, “The committee of creditors will likely negotiate with proposed bidders. CoC will try and work out a best possible resolution plan with the bidders. If viable options don’t come out in negotiation process, big haircut is on the cards.”
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