Reliance Home Finance appoints panel to take steps for resolution process

(RHF), an Anil Ambani-promoted Reliance Group firm, on Monday said it has appointed a panel for taking forward the resolution process of the debt-laden mortgage company. A group of lenders led by Bank of Baroda has under the Inter-Creditor Agreement (ICA) issued a letter of intent dated June 19, 2021 in favour of the Authum Investment and Infrastructure Ltd as it has submitted the highest bid for taking over RHF.

Authum had submitted a bid of Rs 2,911 crore (which includes Rs 24 crore as deferred interest) to financial creditors subject to the terms and conditions of the bid document which has been approved by the lenders at their meeting held on June 19, 2021, RHF said in a BSE filing.

The RHF board at its meeting held on Monday, took note of the resolution plan approved by the lenders forming part of the ICA under RBI’s Prudential Framework for Resolution of Stressed Assets directions dated June 7, 2019.

“The Board of Directors of RHF has also appointed a committee to take further steps in the matter,” it said.

The implementation of the resolution plan by the successful bidder is subject to approval of non-ICA lenders, shareholders, regulatory authorities and, vacation of existing legal injunctions on the company, it added.

Authum is a domestic non-banking financial company with around 15 years of presence and has assets under management (AUM) of about Rs 2,200 crore.