Lenders of Reliance Capital Limited (NSEI:RELCAPITAL) (RCap) will begin voting on the resolution plan put forth by a Hinduja Group Limited entity starting June 9. The plan offers a recovery amount of a little over INR 100 billion. During a two-day meeting, the lenders discussed the plan and will now proceed with the voting process. Once owned by Anil Ambani, the company defaulted on loans worth INR 240 billion and consequently, was sent for debt resolution in November 2021.

IndusInd International Holdings Ltd. (IIHL), a subsidiary of the Hinduja Group, submitted a detailed resolution plan earlier this week. Other bidders, including Torrent Investments Private Limited, Piramal Capital, and Oaktree Capital Group, LLC, did not submit detailed plans within the given deadline, according to a report by the Economic Times (ET). The administrator of RCap, Nageswara Rao Y, has invited the committee of creditors to vote on IIHL's plan from June 9. If more than 66% of verified creditors vote in favor of the plan, the administrator will file an application with the National Company Law Tribunal (NCLT) seeking approval for the IIHL plan.

At the end of May, the lender of RCap had approved a plan to distribute funds received from the resolution plan based on their respective admitted claims, regardless of how they voted on the plan. Reportedly, this fund distribution will be different from earlier practices as the new plan requires equal treatment to all lenders and avoids litigation. Separately, the Hinduja Group will seek consent from the Reserve Bank of India (RBI) for the plan.

The RBI's approval is required for the acquisition of financial services companies in bankruptcy resolution processes. However, the sale of RCap is pending the (SC)'s decision on a suit filed by Torrent Investments regarding the extended auction deadline.