Piramal Capital and Housing Finance has withdrawn the insolvency proceedings against Reliance Power. The company withdrew the application under section 7 of the Insolvency and Bankruptcy Code 2016, a BSE filing stated.

This follows an out-of-court settlement between both companies over Rs 526-crore loan default by Reliance Power and its subsidiary Reliance Natural Resources Ltd (RNRL).

In 2010, RNRL merged with Reliance Power.

RNRL had defaulted on a loan of Rs 526 crore obtained from the erstwhile Dewan Housing Finance Corporation Ltd (DHFL).

The Piramal Group acquired DHFL in 2021 and merged it with Piramal Capital and Housing Finance.

In March this year, Piramal Capital initiated bankruptcy proceedings against Reliance Power under section 7 of the IBC, 2016 in the NCLT Mumbai to recover dues.

In July, during a hearing on Piramal Capital’s application, both companies informed the NCLT (National CompanyLaw Tribunal) that they were engaged in talks to settle thematter through mutual consent.

LIC move irks lenders

Days ahead of the deadline to submit binding bids, LIC’smove to sell its Rs 3,400-crores ecured principal debt of cash-strapped Reliance Capital Ltd(RCL) to an asset reconstruction company (ARC) has irked its lenders and bidders.

The last date for submitting binding bids for RelianceCapital Ltd (RCL) and its subsidiaries is November 28.

LIC is conducting a SwissChallenge process to invite bids from Asset Reconstruction Companies (ARCs) to sell its exposure in RCL, sources said, adding prospective bidders will be asked to better the offer. However, Asset Care and Reconstruction Enterprise will have the first right to match the counteroffer.