RCom Lenders To Finalise RP From Shortlist Of 5

The lenders of Reliance Communications (RCom), an Anil Ambani group company, have shortlisted five Resolution Professionals (RPs) based on technical evaluation for the debt-laden firm’s bankruptcy process.

The five RPs were shortlisted from a total of 30 after receiving Expressions of Interest (EoIs) from them, and of the list, 14 were eliminated based on technical evaluation, sources close to the development told BusinessLine.

The shortlisted five are: Ajay Joshi of Duff & Phelps; Ashok Kumar Gulla of RBSA; Sundaresh Bhat of BDO; and Savan Godiawala and Ashish Nanavaty, both from Deloitte.

The lenders, led by the State Bank of India, have also informed the National Company Law Tribunal’s (NCLT) Mumbai bench about the short-listing yesterday, they added.

All the five were asked to submit revised financial bids, which opened at 2 pm on Monday. Following further evaluation, one name will be finalized. The Committee of Creditors (CoC) will have to approve the RP with a 66 per cent vote, after NCLT starts the insolvency process.

Duff & Phelps has quoted Rs. 3 crore as fee for six months — or Rs. 50 lakh per month — while RBSA’s quote stood at ₹2.4 crore for six months (Rs. 40 lakh a month). BDO quoted RS. 3.6 crore for six months (Rs. 60 lakh per month).

Deloitte, which was suggested by SBI as RP, has quoted Rs. 7.62 crore or Rs. 1.27 crore a month, they added.

The companies could not be immediately contacted to verify the figures.

Once the Insolvency and Bankruptcy Code (IBC) proceedings begin, the RP will be paid from the lenders account. On May 3, SBI had held a meeting to shortlist an RP after issuing a request for proposal in April.

However, the Chinese lenders — with 36 percent of the total debt — Standard Chartered, and a number of non-members of the Joint Lenders Forum are opposed to Deloitte being the RP.

NCLT begins hearing

Meanwhile, NCLT on Tuesday began hearing the bankruptcy proceedings of RCom, which owes Rs. 37,500 crore to about 37 secured creditors led by SBI.

The Mumbai bench of NCLT directed the existing RP to continue and file a report by May 30, when the matter comes up for hearing again.―The Hindu Business Line