Four bidders give EoIs for Vidarbha power debt

economictimes.indiatimes.com:

ARC backed by Varde Partners, Reliance ARC, Rare ARC and Asset Reconstruction Company India (Arcil) — have submitted expressions of interest (EOIs) to acquire the debt of Vidarbha Industries Power, people in the know told ET. These bidders will proceed with due diligence and may submit final bids during the Swiss challenge process to sell the debt. CFM ARC has already made an all-cash offer of ₹1,220 crore and it will serve as the anchor bid.

Vidarbha Industries is a subsidiary of Anil Ambani's Reliance Power. Varde Partners, bidding alongside Aditya Birla ARC, had also offered to fund the promoter's one-time settlement offer of ₹1,260 crore, but the lenders did not proceed with it. Reliance ARC is 49% owned by Reliance Capital, another Anil Ambani group company which is undergoing restructuring proceedings.

Lenders have approved the sale of Reliance Capital to the Hinduja Group. Vidarbha Industries' lead lender, Axis Bank, had appointed SBI Caps as the process advisor for the sale and invited counteroffers on CFM ARC's bid. CFM ARC's offer represents a 48% recovery for lenders on the company's estimated total debt of ₹2,569 crore.

Spokespersons for SBI Caps, Aditya Birla ARC, Rare ARC, Arcil and Reliance ARC did not respond to request for comment. The bidders will conduct due diligence and decide whether to submit firm bids during the Swiss challenge process, the date of which is yet to be announced. CFM ARC, as the anchor bidder, will have the right of first refusal and can match the highest bid.