NARCL plans to ramp up acquisition of distressed assets in fiscal year 2024
2 min read . Updated: 10 Apr 2023, 01:06 PM IST
Premium- NARCL has proposed an acquisition plan of ₹600 crore to secure the admitted claims of ₹7,086 crore from Rolta India's secured lenders.
National Asset Reconstruction Co Ltd (NARCL), which is supported by the government, is expected to accelerate the acquisition of distressed assets in the current fiscal year, despite failing to meet its goal of acquiring loans worth ₹50,000 crore in the previous fiscal year, reported Economic Times citing sources.
Last fiscal year, NARCL, which is backed by state-owned banks, acquired outstanding loans worth ₹10,378 crores from Jaypee Infratech, SSA International, and Helios Photo Voltaic Ltd. This figure amounted to only one-fifth of the target set by the company. Notably, all three loans were acquired for a total consideration of ₹3,636 crore.
Subject to approval by the adjudicating authority, NARCL is expected to acquire loans worth ₹30,000 crore from Srei Equipment Finance and Srei Infrastructure Finance in the current fiscal year, FY24.
Although NARCL's resolution offer of ₹5,555 has been approved by lenders, the offer has been contested by promoter Hemant Kanoria, who has made a counteroffer. The matter is currently being heard at the National Company Law Tribunal (NCLT).
NARCL has proposed an acquisition plan of ₹600 crore to secure the admitted claims of ₹7,086 crore from Rolta India's secured lenders.
After its management avoided insolvency on three occasions over the last four years, military software developer Vidarbha Industries Power was brought before the bankruptcy court. Recently, NARCL submitted an offer of ₹1,150 crore to acquire Vidarbha Industries Power's loans, which are still pending approval from the lenders.
Notably, Vidarbha Industries Power is an Anil Ambani group company.
Last year, Vidarbha's lenders suffered a setback when the Supreme Court overturned the National Company Law Tribunal's decision to initiate bankruptcy proceedings. The court ruled that other factors leading to the default had not been considered.
In another acquisition, NARCL acquired the debt of Dharani Sugars and Chemicals for ₹222 crore through an uncontested Swiss auction on March 17. The company's debt amounted to ₹619 crore.