Uncertainty looms over the Reliance Nippon Life Insurance JV project as it will roll out its RCAP solution plan for NCLT approval Wednesday.


SBI Life and Apollo join the race for RCap assets. Image source: IANS News

Mumbai, August 28: Reliance Capital’s decision is set to clear the final hurdle when NCLT Mumbai takes IIHL’s dissolution plan for approval on Wednesday (30 August).

On Friday, the Supreme Court refused to stay proceedings before the NCLT over the torrent petition. Hinduja Group, IIHL’s Rs 9,800 crore dissolution plan has already been approved by the lenders with a vote rate of 99.6 per cent. IIHL’s dissolution plan casts uncertainty over Reliance Capital’s life insurance joint venture with Japan’s Nippon Life.

Nippon Life owns 49 percent stake in Reliance Nippon Life Insurance Company (RNLIC), while RCAP owns 51 percent. The dissolution plan states that all existing agreements, including the shareholder agreement, will be voided.

Paragraph 4.12.2 of the Dissolution Plan states that “It has been clarified that all shareholder agreements, share purchase agreements, share sale agreements and any other agreement relating or relating to the regulation of the affairs of the debtor company and/or governing mutual relations – the rights to sell the shareholders of the debtor company shall terminate without any The right of recourse against the debtor company or the dissolution applicant.

This provision of the solution plan puts a question mark on the future of RNLIC, a 51:49 joint venture between RCAP and Nippon Life of Japan. According to a banker involved in the process, where the dissolution plan calls for all existing shareholder agreements to be canceled, there is a question mark over the fate of RCAP’s life insurance joint venture with Japan’s Nippon Life.

So far, there is no clarity about what happens to this joint venture. The banker said there were multiple options for Nippon Life and IIHL, the new owner of the RCAP group of companies.

Source: IANS

Disclaimer: This story has not been edited by the WBSETCL team and is auto-generated from syndicated feed.

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