Phoenix ARC in talks with banks to acquire VVF India loans

Kotak Mahindra Bank-backed Phoenix ARC is in talks with banks to acquire loans of VVF (India) Ltd, makers of personal care products such as Doy Care and Jo, said two people aware of the development.

Phoenix ARC has, last week, offered ₹105 crore to Bank of India for its ₹210 crore loans to VVF (India).

The offer, which equates to a recovery of 50% for the state-owned bank, has triggered a Swiss challenge auction which is scheduled for April 30. VVF (India) has borrowings of ₹1,400 crore, according to a credit rating report by Crisil Ltd.

Last week, Bank of India invited bids for ₹188.3 crore of fund-based and ₹22 crore of non-fund-based, such as bank guarantees and letter of credit, exposure.

Phoenix ARC did not respond to ET's request for comment.

The company was admitted for insolvency proceedings last September following a petition filed by Bank of India. However, within a month, the appellate authority ordered a stay on the formation of a CoC, following an appeal by the company that it was in talks with lenders for an out-of-court settlement.