Shapoorji obtains HC stay, a barrier for Reliance Home Finance
Real Estate

Shapoorji obtains HC stay, a barrier for Reliance Home Finance

A legal case filed by Shapoorji Pallonji Group against Reliance Home Finance Ltd (RHFL) comes as a hurdle in the way of the latter's debt resolution by lenders.

RHFL is at the final stages of the debt resolution process. However, as per sources, lenders cannot proceed with the resolution process due to a coercive stay obtained by the Shapoorji Pallonji Group from Delhi HC in November 2019, against RHFL to sell its assets could be a barrier to a speedy resolution.

According to the stay obtained by Shapoorji Pallonji Group, RHFL is prohibited from disposing off, alienating, encumbering either directly or indirectly, or otherwise part with the possession of any of its assets. This directly impacts the ongoing debt resolution of the company.


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


The resolution process, being managed by Ernst & Young (EY) and BOB Capital Markets (BOB Caps), has got four binding bids to the lenders.

Out of these four bidders, Authum Investments and ACRE have been for all the company's assets. The other two bids, from Avenue-Arcil and Capri Global, are for buying only the company's retail assets.

Shapoorji Pallonji Group is a secured lender with just Rs 200 crore of exposure out of the total debt of Rs 11,200 crore, which is less than 1.8% of the total debt of RHFL.

Separately, the same group of banks is considering debt resolution under a one time restructuring (OTR) of the Shapoorji Pallonji group with over Rs 30,000 crore of debt.

In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of RHFL and Reliance Commercial Finance, both arms of Reliance Capital.

Image Source


Also read: SBI, Shapoorji sign MoU for faster home loan processing

A legal case filed by Shapoorji Pallonji Group against Reliance Home Finance Ltd (RHFL) comes as a hurdle in the way of the latter's debt resolution by lenders. RHFL is at the final stages of the debt resolution process. However, as per sources, lenders cannot proceed with the resolution process due to a coercive stay obtained by the Shapoorji Pallonji Group from Delhi HC in November 2019, against RHFL to sell its assets could be a barrier to a speedy resolution. According to the stay obtained by Shapoorji Pallonji Group, RHFL is prohibited from disposing off, alienating, encumbering either directly or indirectly, or otherwise part with the possession of any of its assets. This directly impacts the ongoing debt resolution of the company.4th Indian Cement Review Conference 202117-18 March Click for event info The resolution process, being managed by Ernst & Young (EY) and BOB Capital Markets (BOB Caps), has got four binding bids to the lenders. Out of these four bidders, Authum Investments and ACRE have been for all the company's assets. The other two bids, from Avenue-Arcil and Capri Global, are for buying only the company's retail assets. Shapoorji Pallonji Group is a secured lender with just Rs 200 crore of exposure out of the total debt of Rs 11,200 crore, which is less than 1.8% of the total debt of RHFL. Separately, the same group of banks is considering debt resolution under a one time restructuring (OTR) of the Shapoorji Pallonji group with over Rs 30,000 crore of debt. In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of RHFL and Reliance Commercial Finance, both arms of Reliance Capital. Image Source Also read: SBI, Shapoorji sign MoU for faster home loan processing

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