Best Offer For Reliance Capital 60% Below Aggregate Liquidation Value: Report


Best Offer For Reliance Capital 60% Below Aggregate Liquidation Value: Report

If the bidders fail to raise their offers, there is a risk of liquidation.(File)


The highest bid India’s Reliance Capital, which is undergoing insolvency proceedings, received was 60% below its aggregate liquidation value, the Anil Ambani-led company’s administrator has let its lenders know, the Economic Times reported on Friday.

The Reserve Bank of India superseded the board of Reliance Capital last year, saying it would initiate bankruptcy proceedings against the firm after auditors raised several red flags around its results, including a lack of clarity in its accounting methodology.

The firm has since failed to make several debt and interest payments on debentures.

If the bidders fail to significantly raise their offers, there is a risk of liquidation or piecemeal selling of the assets as a going concern, the Economic Times reported, citing two people aware of the development.

Lenders are expected to hold one-on-one meetings with all eight bidders to discuss details and request them to improve the offers made until now, the newspaper reported.

Reliance Capital did not immediately respond to a Reuters’ email seeking comments.

Anil Ambani, the younger brother of billionaire Mukesh Ambani, forced a split in the conglomerate after his father Dhirubhai Ambani’s death in 2002.

Anil had won control of the power, financial services and the newly built telecoms business, but heavy debt load and competition has seen his companies shut down, or on the brink of liquidation.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Featured Video Of The Day

Inflation Below 7%, 1st Time In 3 Months


Please enter your comment!
Please enter your name here

Share post:


More like this

India’s Forex Reserves Fall For 2nd Consecutive Week To $589.19 Billion

<!-- -->There was a decrease of $4.34 billion from...

BRICS Nations Pitch For Using Local Currencies In International Trade

<!-- -->BRICS nations on Friday underlined the need for...

GST Collection Rises 12% To Rs 1.57 Lakh Crore In May

<!-- -->GST collection in May rose 12 per cent...