Anil Ambani’s bankrupt company Reliance Capital will delist from the exchanges. This is after the UK-based Hindujas got the NCLT nod for the resolution plan to revive Reliance Capital and the details of the plan were made public in an exchange filing
“As part of the Approved Resolution Plan, the entire existing share capital of RCL (Reliance Capital) is proposed to be cancelled and extinguished for NIL consideration by virtue of the NCLT Approval Order such that IIHL and/or IIHL BFSI (India) Limited (“the Implementing Entity”) and its nominees are the only shareholders of the Corporate Debtor,” said the company in the exchange filing.
This means that IIHL will be the sole shareholder of the bankrupt company. And other shareholders won’t get compensated for their holdings as they’ll get cancelled after NCLT’s order. “The liquidation value of the equity shareholder of RCL is NIL and hence, equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL.”
The remaining admitted claims of Financial Creditors shall be converted to equity shares of the Corporate Debtor at par, the exchange filing read.
Earlier, on February 27, the National Company Law Tribunal approved the resolution plan submitted by IndusInd International Holdings of Rs 9,650 crore. The lender of last resort, the Reserve Bank of India, took over the board of the debt-ridden company based on governance issues and defaults made on payment. Further, the RBI appointed Nageshwar Rao Y as the administrator. The company had a liability of Rs 40,000 crore