A section of Reliance Home Finance bondholders, upset by the poor payouts made as part of the acquisition process, now threatens to derail his plans to quickly enter the lending business.
X owned 490 bonds of Reliance Home Finance Ltd, formerly a part of the Anil Dhirubhai Ambani Group that went into bankruptcy. Carrying a face value of Rs 1,000 each, he should have got Rs 4.9 lakh under the resolution plan of the company that was cleared by the Supreme Court in March this year.
Instead, what he was repaid was less than a fourth of that amount. X isn’t alone. There are a little over 2,300 such bondholders who were eligible to get full repayment under the plan, but have received haircuts ranging from 73% to 90%.
The discrepancy …
Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.
Editor, Banking
furquan@mailtmc.com
Delhi