Aditya Birla ARC, Reliance ARC & Arcil in shortlist for Vidarbha Inds

economictimes.indiatimes.com:

Vidarbha Industries Power will hold a Swiss challenge auction on August 8 among the three shortlisted asset reconstruction companies (ARCs), said people aware of the development. Lenders have shortlisted Aditya Birla ARC, Avenue Capital-backed Asset Reconstruction Company of India (Arcil) and Reliance ARC as eligible candidates to submit counter offers for the sale of the distressed power company, the people said. Banks have preferred CFM Asset Reconstruction Company, an anchor bidder, to the promoter Anil Ambani group, for the proposed loan auction under a Swiss challenge mechanism, as first reported by ET.

They received four expressions of interest within the stipulated deadline of July 17, as reported by ET. CFM ARC offered ₹1,220 crore as against a higher one-time settlement offer (OTS) of ₹1,260 crore by Reliance Power, an Anil Ambani company with a controlling stake in the thermal power company. As an anchor bidder, CFM ARC will have the first right to match the highest offer that lenders receive on August 8.

Rare ARC's expression of interest was rejected, one of the persons cited above said. While inviting bids, process advisor SBI Caps stipulated that EoI applicants should submit ₹10 lakh as a non-refundable bid process participation fee. «This is a very unusual condition aimed at discouraging potential bidders,» said a senior official from an ARC.

Lenders have stipulated that counteroffers should be 5% higher than the anchor offer of ₹1,220 crore. The company has a principal debt of ₹2,569 crore and $26.7 million (₹220 crore) as on July 6, a document circulated by lenders inviting counteroffers stated. Axis Bank, State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank and Bank of Maharashtra are