Latest News | RCF Debt Resolution Plan Approved by Debenture Holders

New Delhi, Dec 9 (PTI) The resolution plan of Authum Investment and Infrastructure has received 99 per cent vote of debenture holders of Reliance Commercial Finance Limited, a group company of debt-ridden Reliance Group promoted by Anil Ambani.

With the approval, Authum Investment and Infrastructure moved a step further for the acquisition of Reliance Commercial Finance, sources said.

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The plan -- initially approved by the inter-creditor agreement (ICA) lenders on July 15 this year -- was subject to the approval of non-ICA lenders.

The delay was on account of the confusion caused by the market regulator's recent circular on voting by debenture holders, the sources said.

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The Sebi circular was a cause of concern for various debenture holders, as it impeded their basic contractual rights, defined in the debenture trust deeds, according to the sources.

Lenders are relieved that finally the plan has been put to vote and has been approved with an overwhelming majority, the sources said.

Authum Infrastructure and Investment's bid of Rs 1,585 crore had received over 80 per cent votes from lenders in July.

The lenders have already received cash recovery of Rs 1,240 crore, and an additional Rs 25 crore are expected to come along with the resolution proceeds, the sources said.

The total debt of Reliance Commercial Finance stands at Rs 9,000 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)