At Rs 10,000 crore, Anil Ambani's Reliance Capital recovery may be only 43%

Lenders to Anil Ambani's Reliance Capital are expected to recover approximately ₹10,000 crore, which represents about 43% of the verified claims totaling ₹23,666 crore. This outcome follows the Hinduja Group's bid of ₹9,650 crore, which saw only a marginal increase of ₹10 crore during recent negotiations. The total recovery amount includes around ₹430 crore in cash balances from the distressed financial services company. The estimated liquidation value of Reliance Capital is between ₹12,500-13,000 crore, indicating a significant shortfall in recovery for creditors. Moving forward, the Hinduja Group will submit a comprehensive resolution plan, and lenders are working to finalize the distribution of the recovery proceeds. Approval from major debtholders, including LIC and EPFO, is crucial, as a resolution plan requires a 66% majority vote from creditors. Additionally, the Supreme Court's upcoming hearing in August regarding an auction dispute involving Torrent Investments adds another layer of complexity to the situation. The decision by Credit Suisse-led bondholders not to contest an NCLT ruling, which requires them to return Reliance General Insurance shares to the administrator, is seen as a relief for concerned lenders, helping to expedite the resolution process.