JC Flower ARC After Cerberus Capital and Asset Reconstruction Company of India, won the non-performing loan portfolio in an uncontested Swiss auction for Rs 11,183 crore (archillo) who had teamed up for a bid and dropped out of the race, as ET reported on September 9.
JC Flowers ARC has to be paid within 60 days of the formal approval of the proposal by Yes Bank. One of the two men said that according to the terms of the auction, if it fails to pay within the stipulated time, its earnest money amounting to $50 million (about Rs 400 crore) could be forfeited.
The deal between the bank and the ARC is under a 15:85 structure, with 15% being paid in cash and 85% in security receipts. Effectively, JC Flowers ARC will have to raise Rs 1,677 crore for cash payment within 60 days