NARCL places Rs 260 crore bid for Metenere's Rs 3,040 crore debt
NARCL), the country's so-called 'bad bank', has offered Rs 260 crore to acquire Rs 3,040-crore debt of Metenere Ltd, equating to 8.5% recovery for lenders, said people aware of the development.
A consortium of 10 lenders led by the State Bank of India accepted the offer under a 15:85 structure and has invited counter offers from other asset reconstruction companies, the people cited earlier said.
Lenders will now hold a Swiss challenge auction on March 6, and have invited counter offers with a markup of Rs 15 crore over the anchor offer. NARCL, set up by government to acquire bad loans, will have the first right to match any counter offer.
Metenere, undergoing corporate insolvency, is into lead recycling and makes non-ferrous products such as tin and aluminium. Its insolvency process, started in September 2020, is mired in litigation and, thus, it is not resolved yet.
Lenders with 92% debt hold approved the resolution plan of Shoora Capital FZE, a commodity trader, but later wanted to withdraw their approval due to a breach in terms of the approved plan.
The NARCL offer under a 15:85 structure implies that 15% of the consideration will be offered as cash while the balance will be a security receipt (SR).
SBI has invited counter offers in cash; however, a challenger bid can be in combination with cash and SR, provided that a commercial bank guarantees the SRs.
Among lenders, SBI has the biggest exposure with loans amounting to Rs 1,086 crore, followed by Bank of Baroda at Rs 510 crore.
Separately, NARCL has
