RCap lenders hive off home finance, NBFC into separate trust for resolution

The proceeds of the sale of these two companies in future will flow directly to the lenders of the Reliance Capital which is currently undergoing a bankruptcy process

To expedite the sale process of a bankrupt Reliance Capital (RCap), its lenders have decided to hive off Reliance Commercial Finance (RCF) and Reliance Home Finance (RHF) into a trust for a separate resolution process.

The proceeds from the sale of these two carved-up companies will flow directly to the lenders of RCap - currently undergoing an insolvency resolution.

An asset-sale committee, which will be formed to supervise the sale of these two companies, will comprise three members drawn from the committee of creditors (CoC), the administrator, and Deloitte.

In the event of failure or delay in implementing the resolution