Chinese banks seek FM intervention in Reliance Infratel resolution plan
Chinese banks have written to Finance Minister Nirmala Sitharaman over delays in implementing the resolution plan for Reliance Infratel Limited.
China Development Bank, China Export-Import Bank, Shubh Holdings Pte. ltd. and SC Lowy Asset Management have written to the Minister of Finance and the Chairman of IBBI in their respective capacities as financial creditors of Reliance Infratel Limited (RITL).
Collectively, these banks hold an aggregate financial debt of Rs 13,483 crore out of RITL’s total financial debt of Rs 41,055 crore.
“We wish to bring to your attention a deeply concerning impediment in the implementation of the resolution plan for RITL by the successful resolution applicant – Reliance Projects & Property Management Services Limited (RPPMSL) (formerly known as Reliance Digital Platform & Project Services Limited), a subsidiary of Reliance Jio Infocomm Limited (RJio),” the letter read.
“Given this roadblock and the instances of successful resolution applicants opting out of resolution plans, we further request that the MCA and IBBI consider introducing appropriate legislative amendments to the Code to deter successful resolution applicants to withdraw or modify resolution plans (once submitted as part of the CIRP) or delay or suspend implementation of National Company Law Tribunal (NCLT)-approved resolution plans,” the banks said.
The banks said that in the current situation, the NCLT has already approved the RPPMSL resolution plan. In view of this, RPPMSL is not authorized to modify or withdraw the RPPMSL resolution plan in any way and for any reason (including, due to the forensic audit report).
In addition, since the RPPMSL Resolution Plan will result in a change in the management or control of RITL, the risk (if any) that RPPMSL will be liable for breaches committed by RITL prior to the start of the CIRP is non-existent.
Accordingly, the RPPMSL should be required to implement the RPPMSL resolution plan on an immediate basis. This will not only preserve the sanctity of the CIRP as contemplated by the Code, but also ensure faster recovery for creditors who have been waiting two years for resolution of the RITL.
The banks requested the MCA and IBBI to intervene urgently in the RPPMSL application and to request the NCLT to immediately lead the implementation of the RPPMSL resolution plan.
“As financial creditors and stakeholders of RITL who have been waiting for the resolution of the RITL since 2018, we request your intervention in the RITL CIRP (where there is a clear resolution plan approved by the NCLT) as a matter of urgency,” said the banks.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)