RCap vs Credit Suisse, battle of two paupers! Credit Suisse blocks Anil Ambani’s Reliance Capital sale – credit suisse sends legal notice to halt reliance capital’s resolution plan
[ad_1]
Credit Suisse was recently on the verge of collapse. It has been bought by UBS Bank of Switzerland itself. Credit Suisse, through its lawyers, has sent a notice to Reliance Capital’s administrator Nageswara Rao. It says that he has a debt of Rs 660 crore on this company. The claims of Credit Suisse and Axis Bank were dismissed. After this, both the banks had approached the NCLT last year. Credit Suisse claims that it is the secured creditor in this case. It has asked the Administrator to refrain from proceeding with the resolution plan. He says that if the resolution plan is finalized then it will be against the rules.
debt on reliance capital
The board of heavily debt-ridden Reliance Capital was dissolved by the RBI on 30 November 2021 and insolvency proceedings were initiated against it. Nageswara Rao was appointed as the administrator of the company by the Central Bank. In the first round of Reliance Capital’s auction, Torrent Group had made the highest bid of Rs 8,640 crore. But Hinduja increased its bid to Rs 9,400 crore after the auction. Torrent objected to this and approached the Supreme Court to stop the second round of bidding.
In February, NCLT declared Torrent as the largest bidder. He said that Hinduja had bid after the process was over and hence it was illegal. But the NCLAT allowed the second round of auction. Torrent challenged the NCLAT order in the Supreme Court. The court has not yet given its decision on this. The Administrator has verified claims of Rs 23,666 crore from financial creditors. LIC has claimed Rs 3400 crore. In September 2021, Reliance Capital told its shareholders that the company had a debt of over Rs 40,000 crore.
[ad_2]
Source link
