IIHL transfers money to creditors in first step to take over Reliance Capital
IndusInd International Holdings (IIHL), the winning bidder to take over Reliance Capital Ltd has transferred Rs 2,750 crore to a designated escrow amount in line with the National Company Law Tribunal (NCLT) directions, one person with the direct knowledge of the transfer said.
«The money was received on Saturday morning which is what the court had directed. IIHL has also given a binding term sheet by banks which has details of the loans they will raise to finnance the transaction,» this person said.
On Thursday a NCLT bench, comprising Justices Virendrasingh G Bisht and Prabhat Kumar, directed IIHL to implement the resolution plan by August 10 and deposit the equity component of Rs 2,750 crore in an escrow account designated by the committee of creditors (CoC).
Earlier on August 1, creditors to Anil Ambani-promoted Reliance Capital, led by bond holders trustee Vistra ITCL (India) in a letter to Mauritius-based IIHL had warned the Hinduja company about consequences for failing to pay the Rs 2,750 crore to take over the debt-laden company by the July 31 deadline.
IIHFL had later claimed that the money was transferred to their own account as the company did not have details of the escrow account.
According to the resolution plans submitted by the company, Rs 250 crore was supposed to be transferred to a domestic account and Rs 2500 crore was to be transferred to an offshore escrow account designated by the CoC as part of the fund infusion by IIHL. The company also had to show Rs 7,300 crore of term sheets for
