RBI\'s order could spell trouble for ARC-owning PE funds\, say experts

RBI's order could spell trouble for ARC-owning PE funds, say experts

The RBI had recently rejected a resolution plan - approved by the National Company Law Tribunal in June - that proposed selling Aircel's assets to UV Asset Reconstruction Company (UVARC)

Topics
private equity funds | Private equity firms | Asset reconstruction companies ARCs

Surajeet Das Gupta  |  New Delhi 

Private equity (PE) funds owning asset reconstruction companies (ARCs), apart from pure-play ARCs, could land in serious trouble if the Reserve Bank of India (RBI) does not reverse its decision to disallow them from being resolution applicants of a stressed asset under the Insolvency and Bankruptcy Code (IBC).

The RBI had recently rejected a resolution plan — approved by the National Company Law Tribunal in June — that proposed selling Aircel’s assets to UV Asset Reconstruction Company (UVARC). It was disallowed by the banking regulator on grounds that it was not ...
First Published: Thu, August 27 2020. 06:06 IST