Bangalore:
The highest bid received by India’s Reliance Capital, which is undergoing insolvency proceedings, was 60% below its total liquidation value, the manager of the Anil Ambani-led firm told lenders, the Economic Times reported Friday.
The Reserve Bank of India succeeded Reliance Capital’s board last year and said it would launch bankruptcy proceedings against the company after auditors raised several red flags over the results, including a lack of clarity in its accounting methodology.
The company has since failed to make several debt and interest payments on bonds.
If the bidders do not raise their bids significantly, there is a risk of liquidation or fragmented sale of the assets as an ongoing matter, the Economic Times reported, citing two people who knew about the development.
Lenders are expected to hold one-on-one talks with all eight bidders to discuss details and ask them to improve on offers made so far, the newspaper reported.
Reliance Capital did not immediately respond to an email from Reuters seeking comment.
Anil Ambani, the younger brother of billionaire Mukesh Ambani, forced a split in the conglomerate after the death of his father Dhirubhai Ambani in 2002.
Anil had taken control of power, financial services and the newly built telecom business, but heavy debt and competition forced his companies to shut down or put them on the verge of liquidation.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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