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is a big relief Authum Investment & InfrastructureThe Supreme Court On Friday asked the company to implement its Rs 2,887-crore resolution plan for the acquisition of Anil Ambani. Reliance Home Finance Till 31 March.
The court, however, said that the aggrieved debenture holders should be given an option to accept the terms of the resolution plan or they can adopt other legal remedies to recover their dues.
A bench headed by Justice BR Gavai asked Authum to make the payment before March 31.
decide the case on the same lines as in the case of Reliance In the case of Commercial Finance (SEBI vs Rajkumar Nagpal), the apex court directed that dissenting debenture holders should be given an option to accept the terms of the resolution plan.
Alternatively, the dissenting debenture holders shall have the right to opt out of the proposed scheme prepared under the inter-creditor agreement of the lenders and pursue other legal remedies for recovery of their entitled dues.
The top court said that small investors, whose investment is up to ₹5 lakh, are getting benefits up to 100% of their principal amount. “Even debenture holders whose exposure is more than ₹5 lakh are getting 23.24% of their principal amount, similar to the case of Rajkumar Nagpal,” it said.
led banks yes bank (13% of the loan) and Bank of Baroda (11%) benefit due to delay in debt collection RHFL has increased from ₹1,600 crore to ₹3,100 crore at the time of issuance of letter of intent.
“The total value of Sankalp Yojana is now ₹3,300 crore, of which ₹3,100 crore is cash in the company. Shapoorji’s ₹200 crore will be adjusted from this amount and Authum will put in another ₹200 crore, hence the deduction to be made by the banks. The delay has resulted in the shortfall, said a person familiar with the transaction.
Authum’s offer will therefore rise to ₹3,100 crore or a 72% haircut as compared to ₹2,887 crore for secured creditors or a 74% haircut to the total outstanding amount of ₹11,200 crore, when the plan is agreed upon in 2021.
BoB Capital Markets, the investment banking arm of BoB, and consultancy firm EY were process advisors to the lenders in the solution.
Meanwhile, the administrators of the parent company of RHFL Reliance CapitalY Nageswara Rao has called an extraordinary general meeting (ECM) of RHFL shareholders on March 25 to approve the resolution plan. Authum has committed to meeting the resolution by March 31.
RHFL is the largest in Anil Ambani’s financial services portfolio, which includes commercial finance and insurance businesses. The lenders had started the resolution process for both RHFL and Reliance Commercial Finance (RCFL) before the RBI sent parent Reliance Capital for bankruptcy process at the end of November 2021.
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