NARCL offer for JAL triggers Swiss challenge, a dozen entities interested
NARCL) for the debt-laden Jaiprakash Associates Ltd (JAL) has triggered a Swiss Challenge auction, with close to a dozen entities showing interest in acquiring the Noida-based conglomerate on an all-cash basis.
Distressed aggregators such as the Kotak Mahindra Group-backed Phoenix ARC, US-based Ares Management Corp-backed Acre ARC (asset reconstruction company), Avenue Capital’s Arcil ARC and CFM ARC have expressed initial interest in submitting a bid, said senior executives of these entities.
NBFC Capri Global and US-based alternative investment fund Cerberus Capital have also expressed interest, people familiar with the matter said. ET could not ascertain the names of all entities interested in the asset.
Under the Swiss Challenge auction, new bidders are given the opportunity to beat the anchor bid (in this case by NARCL). Once the best challenging bid is ascertained, the anchor bidder has the right to match or beat the challenger. If the anchor bidder refuses, the asset goes to the challenger.
Bidding entities should have minimum net owned funds of Rs 500 crore to qualify for the auction. In a notice, process advisor IDBI Capital Markets & Securities (ICMS) has set January 7 as the final date for interested parties to submit documents related to the bids. The e-auction is slated for January 8, following which NARCL will be given the chance to either match or beat the best offer from the auction.
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By — Metla Sudha Sekhar,
