Reliance Home Finance takes up resolution plan approved by lenders

The board of directors at Reliance Home Finance (RHF) on Monday took note of a resolution plan approved by lenders under the Reserve Bank of India's (RBI's) prudential framework for resolution of stressed assets. The board also appointed a committee to take further steps in the matter.

Lenders selected Authum Investment and Infrastructure Ltd as the successful bidder to acquire all assets of RHF through a competitive bidding process after several rounds of negotiations between the bidders and lenders.

Authum had reportedly submitted a bid of Rs 2,911 crore (which includes Rs 24 crore as deferred interest) to financial creditors.

The inter-creditor lenders with Bank of Baroda as the lead bank had received initial expression of interest from over 15 bidders of which four binding bids were shortlisted and the final successful bidder was selected.

"The implementation of resolution plan by successful bidder is subject to approval of inter-creditor lenders, shareholders, regulatory authorities and vacation of existing legal injunctions on the company," said RHF in a statement.

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