Union Bank of India attracts bids for 5 troubles accounts out of 25 put on sale
Union Bank of India has received bids for five of the 25 non-performing asset (NPA) accounts it put up for sale. The accounts that received bids from asset reconstruction companies such as JC Flowers ARC includes Jaypee Healthcare, Saraiwwalaa AGRR Refiners Limited, RCM Infrastructure and is looking to recover 15%-89% by selling these accounts.
Prudent ARC submitted a bid for Saraiwwalaa AGRR Refiners, while JC Flower Asset Reconstruction Limited bid Rs. 61 crore for JP Healthcare. Maximus ARC Limited placed a bid of Rs. 27 crore for RCM Infrastructure. CFM ARC bid Rs. 16.29 crore for Green World International and Ramchand Baboo Mall & Company. All bids fall under the 100% upfront cash category.
The bank received the bids on June 27 and plans to proceed with the Swiss auction based on the anchor bids on July 5. The highest bids received for each account will serve as the floor price during the auction. During the Swiss challenge, if a counter bid exceeds the floor price by a minimum markup of 5% to 15%, the original bidder will be given a chance to match the counter bid. If the original bidder matches the counter bid, they will be declared the successful bidder. If no counter bids are received, the original bidder will win by default.
Union Bank of India had set a reserve price of Rs. 55 crore against a total loan of Rs. 335 crore, expecting recovery of 15% for Saraiwwalaa AGRR Refiners. It set a recovery expectation is 89% or Rs 61 crore against debt of Rs. 68 crore for Jaypee Healthcare and 58% or Rs. 27 crore
