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Lenders invite bids for sale of Reliance Commercial Finance

PTI     August 5, 2020

Lenders to Reliance Commercial Finance Ltd (RCFL) have invited bids for the sale of the NBFC on as-is-where-is basis or its assets, a public notice said.

"A consortium of lenders led by Bank of Baroda are desirous of seeking resolution plans from eligible bidders having adequate technical and financial capability, in respect of the company," the notice said.

RCFL, which according to its website has been re-branded as Reliance Money, is a non-banking finance company (NBFC) with asset under management of Rs 11,000 crore.

The company is a 100 per cent subsidiary of Reliance Capital Ltd, and offers a wide range of financial products including small and medium enterprise loans, loans against property, infra financing, agriculture loans and supply chain financing.

The bid process is being run by Deloitte as the resolution advisors, and interested parties have to submit an expression of interest (EoI) by August 11, according to the notice.

The resolution is being pursued by a change in management of RCFL under an RBI circular dated June 7, 2019.

The firm's total borrowings, including debt securities, stood at Rs 9,812.9 crore as on March 31, 2020, down from Rs 10,284.08 crore in the year-ago period.

The resolution plan provides for three options - acquisition of RCFL on as-is-where-is basis, buying the firm with one or more asset books on as-is-where-is-basis and acquiring one or more asset books on as-is-where-is basis.

The notice said the resolution process is being initiated by lenders of RCFL who are signatories to the inter-creditor agreement dated July 6, 2019 and are governed by the RBI circular.

"The lenders comprise approximately 91 per cent of the total outstanding debt of RCFL as on July 6, 2019. The remaining lenders to RCFL comprise mutual funds, pension funds and others, and consent of such lenders may also be required in relation to the implementation of approved resolution plans, depending on the terms of their underlying contracts," it said.

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