Mumbai, Aug 28 The resolution of Reliance Capital is all set to clear the last hurdle when NCLT Mumbai will take up IIHL's Resolution Plan for approval on Wednesday (August 30).
On Friday, the Supreme Court refused to stay the proceedings before the NCLT on the Torrent's plea. The Rs 9800 crore Resolution Plan of Hinduja Group company, IIHL has already been approved by the lenders with 99.6 per cent voting. The IIHL resolution plan casts a shadow of uncertainty on the Reliance Capital's Life Insurance Joint Venture with Nippon Life of Japan.
Nippon Life holds a 49 per cent stake in the Reliance Nippon Life Insurance Company (RNLIC), while 51 per cent is held by RCAP. Resolution Plan envisages that all existing agreements, including Shareholders Agreement, will stand nullified.
The clause 4.12.2 of the Resolution Plan reads "it is clarified that all the shareholders agreement, share purchase agreements, share sale agreements and any other agreement pertaining to or relating to on governing the affairs of the corporate debtor and/or governing the inter-sale rights of the shareholders of the corporate debtor shall stand terminated without any recourse against the corporate debtor or the resolution applicant."
This clause of the Resolution Plan puts a question mark on the future of RNLIC, a 51:49 JV between RCAP and Nippon Life, Japan. According to a banker involved in the process, as the resolution plan states that all existing shareholders agreement will be nullified, there is a question mark on the fate of RCAP's life insurance joint venture with Nippon Life of Japan.
As of now, there is no clarity as to what happens to this JV. There are multiple options before Nippon Life and IIHL, the new owner of RCAP group of companies, the banker said.
--IANS
uk/
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