The deadline for filing bids for the heavily indebted Reliance Capital is likely Monday. Reliance Capital and its subsidiaries have received a fairly muted response from investors despite repeated deadline extensions. Due to worries over Reliance Capital’s most valued subsidiary, Reliance General Insurance Company, investors appear hesitant while making offers. The corporation has until November 1, 2022, to finish the corporate insolvency resolution process.
It is well known that Reliance General Insurance was a target of the Administrator in charge of Reliance Capital’s CIRP.
However, the debenture trustee operating on behalf of Credit Suisse, DBI Trusteeship Services, has declined to release the general insurance company’s shares under the IBC. In November 2019, IDBI Trusteeship Services activated the promise of Reliance Capital’s whole stake in Reliance General on behalf of Credit Suisse.

The IDBI Trustee has refused to transfer the shares of the general insurance company for the resolution process under the Insolvency and Bankruptcy Code, media reports. Despite the Administrator’s desire to include Reliance General in RCL’s insolvency procedure (IBC). “This looks to have hit a hurdle,” they continued.