RCFL lenders invite bids for majority stake in company

The resolution plan provides for three options — acquisition of RCFL on as-is-where-is basis, buying the firm with one or more asset books on as-is-where-is-basis and acquiring one or more asset books on as-is-where-is basis.

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As per lenders, the resolution is being pursued by change in management of RCFL by acquiring 100 per cent stake.
Mumbai: Lenders to Reliance Commercial Finance (RCFL) have invited bids for the sale of controlling stake in the non-bank lender. The bid process is being run by Deloitte as the resolution advisors. The NBFC has assets under management of Rs 11,000 crore.

“A consortium of lenders led by Bank of Baroda are desirous of seeking resolution plans from eligible bidders having adequate technical and financial capability,” a public notice said, inviting expressions of interest by August 11.

The resolution plan provides for three options — acquisition of RCFL on as-is-where-is basis, buying the firm with one or more asset books on as-is-where-is-basis and acquiring one or more asset books on as-is-where-is basis.


As per lenders, the resolution is being pursued by change in management of RCFL by acquiring 100 per cent stake. Banks comprise approximately 91 per cent of the total outstanding debt of RCFL as on July 6, 2019. The remaining lenders comprise mutual funds and pension funds among others. The firm’s total borrowings, including debt securities, stood at Rs 9,812.9 crore as on March 31, 2020, down from Rs 10,284.08 crore last year.

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