Axix Bank Limited filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking admission of claims as a Financial Creditor of Reliance Capital Limited. The bank sought acceptance of its claim of Rs. 1,45,02,42,799.04 as a Financial Creditor and to be included in the Committee of Creditors during the Corporate Insolvency Resolution Process (CIRP) of Reliance Capital Limited. The application stems from commercial papers issued by Reliance Home Finance Limited (RHFL), for which Reliance Capital Ltd. provided an Obligor Undertaking.
In April 2019, Reliance Home Finance Limited (RHFL) proposed issuing commercial papers to raise funds. To protect its interests, Axix Bank Limited obtained a tripartite Obligor Undertaking dated April 10, 2019, executed by Reliance Capital Ltd. (RCL) and RHFL. This undertaking ensured that any dilution of RCL's stake in Reliance Nippon Life Asset Management Limited would be used to pay for the commercial papers. Axix Bank subscribed to commercial papers issued by RHFL with a face value of INR 124 Crore. Letters of Offer were issued on April 15, 2019, and Deal Confirmation was executed on April 16, 2019. The commercial papers were issued on April 16, 2019. RCL diluted its stake in Reliance Nippon, realizing Rs. 5500 Crores, but failed to make payments towards its
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The Applicant, the…
The Applicant subscribed three commercial…
Axix Bank Limited filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking admission of claims as a Financial Creditor of Reliance Capital Limited. The bank sought acceptance of its claim of Rs. 1,45,02,42,799.04 as a Financial Creditor and to be included in the Committee of Creditors during the Corporate Insolvency Resolution Process (CIRP) of Reliance Capital Limited. The application stems from commercial papers issued by Reliance Home Finance Limited (RHFL), for which Reliance Capital Ltd. provided an Obligor Undertaking.
In April 2019, Reliance Home Finance Limited (RHFL) proposed issuing commercial papers to raise funds. To protect its interests, Axix Bank Limited obtained a tripartite Obligor Undertaking dated April 10, 2019, executed by Reliance Capital Ltd. (RCL) and RHFL. This undertaking ensured that any dilution of RCL's stake in Reliance Nippon Life Asset Management Limited would be used to pay for the commercial papers. Axix Bank subscribed to commercial papers issued by RHFL with a face value of INR 124 Crore. Letters of Offer were issued on April 15, 2019, and Deal Confirmation was executed on April 16, 2019. The commercial papers were issued on April 16, 2019. RCL diluted its stake in Reliance Nippon, realizing Rs. 5500 Crores, but failed to make payments towards its
…The Applicant, the…
The Applicant subscribed three commercial…