NCLT approves joint resolution plan for 3 Reliance Group companies


NCLT on Friday approved the appointment of a joint resolution professional as part of the corporate insolvency resolution proceedings against Reliance Communications, Reliance Infratel and Reliance Telecom.

According to the procedures, most of the creditors' committee of the three companies voted independently to appoint Anish Niranjan Nanavati as a PR to replace the existing provisional resolution professionals.

The process that preceded the May 3 to 4 vote of the new PR involved requesting requests. The CoC received 59 applications, of which 23 were invited to submit detailed applications. Of these, 16 responded with detailed presentations on the technical capabilities, of which 5 were pre-selected and asked to respond with financial proposals before the final PR selection was made.

The selection of a common PR was also supported by the justification that the three companies integrated the business with significant overlap of creditors among the three.

NCLT instructed the PR to submit a progress report on July 23.

A pending petition from the Doha Bank against Reliance Infratel has not been listed for Friday and will be resumed on June 28, the next date of the hearing.

Earlier this month, the lawyer representing the Doha Bank and referring to three other direct creditors as being a "direct lenders union of RITL", claimed that the IRP's decision to admit claims of Rs 8,000 crore – based on bankers invoking corporate guarantees issued by Reliance. Infratel to help secure loans for Reliance Communications – diluted the voting share of direct creditors in RITL within the CoC.

The council alleged that the direct creditors' syndicate had lent RITL about Rs.14 billion to RITL while the State Bank of India's direct exposure was Rs 900 million and the exposure of the operating creditors to RITL 300 million.

However, the lawyer claimed that total debt was pushed up with the addition of claims based on corporate guarantees, and that it also diluted the total percentage of votes from the "union" to 15%, from 45%.

The actual claims accepted for RITL, according to documents uploaded on the site, were at Rs 9,665.07 crore.

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