ARCs vie for ACCIL Corp's Jaipur Hotel debt
ARCs) are lining up for the bankrupt ACCIL Corp's ₹270 crore debt in what is turning out to be a rare 100% recovery for banks. The asset in question is an ACCIL-owned hotel in Jaipur, which has been put on block by lenders to recover their dues.
Last month, Omkara ARC beat competitor Asset Reconstruction Company of India (Arcil) with a ₹38 crore cash offer to Chennai-based Indian Bank in a Swiss challenge. Separately, Arcil has emerged as the preferred bidder to take over the ₹113 crore debt owed to Union Bank of India, the lead lender in the case.
«This is a rare case where 100% principal recovery is possible because ARCs have got interest from investors wanting to own a hotel in Jaipur. The hotel itself is coveted because it's a rare working hotel available on a distressed sale, which is valued highly due to the strong rebound in the hospitality business post-Covid,» said a person familiar with the process.
Emails sent to Arcil, Omkara, Union Bank and Indian Bank did not elicit any response.
ACCIL Corp owns the 170-room hotel in Jaipur, which is being managed under the Holiday Inn franchise. Interest in the property is strong because it's a hotel in working condition in a city frequented by tourists. Besides Indian Bank and Union Bank, other creditors to the company are Central Bank of India and Indian Overseas Bank (IOB).
Omkara's bid of ₹38 crore for Indian Bank includes full principal payment together with some interest dues. Similarly, Arcil has also agreed to pay the full principal amount in its offer to
