“All banks are now in the process of seeking board approval to consider NARCL’s offer. In the meantime, the Swiss challenge process will also start getting the best price,” said a person familiar with the plan. “Banks are of the view that in view of the delay in resolution of this account, it is better to consolidate the loan with NARCL and allow it to complete the resolution.”
NARCL’s offer is at less than half of the security arch₹7,936 crore offered and 84% haircut amount on the total loan.
But lenders hope that the consolidation of the account with NARCL will save them from the delay and volatility of the process, with no certainty on closure.
NARCL reserves the right to match any Counteroffers in the Swiss Challenge.
Jaypee Infratech, a real estate and infrastructure company, was among the first 12 entities reserve Bank of India ,reserve Bank of India) was mentioned National Company Law Tribunal ,NCLT) in August 2017. According to bankruptcy and the Bankruptcy Code (IBC).
Leading lender IDBI’s petition was admitted more than five years ago and since then, four rounds of bidding and various litigation in the proposal have left both lenders and home buyers disappointed.
In June 2021, the committee of creditors finally approved Suraksha ARC’s bid to take on the distressed borrower through a court-monitored process. However, more than a year later, that plan has yet to receive dedicated bankruptcy court approval.
Another person said, “If you look at it, the NARCL offer does not include illiquid land and non-convertible debentures (NCDs) that were part of the security offer. So, it is a better deal for banks in that sense. Is.” aware of the plan.
Suraksha ARC had offered 2,500 acres of land and around Rs 1,300 crore through issuance of NCDs as part of its winning bid in 2021.
NARCL’s offer is 15% cash advance guaranteed by the Government and the balance amount in the form of Security Receipt (SR) as per the special arrangement given by RBI to this unit.
If there is no counter offer in the Swiss Challenge Round, NARCL will automatically be declared the winner.