Differences have emerged between the lenders and the RBI-appointed administrator of debt-ridden Reliance Capital Ltd (RCL) over the resolution process of the company’s different subsidiaries or clusters which are on the block, sources said.

As many as 54 bids were received for the resolution of RCL and its multiple subsidiaries as of March 25, which was the last date for submission of expressions of interest (EoI).

Of those, around 22 EoIs are for RCL as a company, while the rest are for individual or a combination of the company’s eight subsidiaries, sources said.

RCL had offered two options to all the bidders. Under the first option, companies could bid for Reliance Capital, including its eight subsidiaries or clusters. The second option gave the companies freedom to bid for its subsidiaries, individually or in a combination, sources said.

Key clusters of RCL are Reliance General Insurance, Reliance Health Insurance, Reliance Nippon Life Insurance, Reliance Asset Reconstruction and Reliance Securities.

Differences have emerged among the administrator, Committee of Creditors (CoC) and their respective legal advisors over the subsidiaries and their resolution process, sources said, adding that all the subsidiaries of RCL are profit-making entities, well-capitalized and management teams of these businesses are also intact.

Therefore, as per the IBC, no compliant plan can be submitted for these subsidiaries as there is no requirement of turnaround because none of these entities is facing any stress and is a well-run business, they said.

The difference of opinion between the administrator and the CoC on the methodology to be adopted for the sale of these subsidiaries is leading to a delay in the finalisation of the Request for Resolution Plan (RFRP) document, they said.

As per the original timeline, the RFRP was to be issued to all those companies who had submitted EoIs by April 5, but according to sources, the CoC and the administrator are yet to finalise the terms of the RFRP document.

The RFRP document sets the guidelines for the submission and evaluation of the resolution plan for a debtor. The RFRP has to be agreed upon between the administrator and the CoC before it is published to all prospective resolution applicants.