Union Bank receives binding bids for four loans of Rs 525 crore
Union Bank of India has received bids for four stressed loans worth more than ₹520 crore from ACCIL Corporation, SDB Developers, Jaypee Healthcare and Gammon India, at less than half the value of the loans. It was on a 100% upfront cash basis to ARCIL, CFM ARC, JC Flowers and Omkara ARC.
JC Flowers Asset Reconstruction Company emerged the frontrunner to acquire distressed loans of Jaypee Healthcare, while Omkara ARC is in fray to acquire Gammon India loans from Union Bank of India. The government bank received binding bids for four stressed accounts with outstanding loans of ₹525 crore and resulting in 34%-90% recovery.
The bank will hold a Swiss auction process on February 21 and accept a minimum bid at 5% mark up to the base bid, according to a bank document.
ACCIL Corporation has received the highest offer among the four loans, where the bank has received a binding bid from Asset Reconstruction Company India Ltd for ₹103 crore against total debt of ₹115 crore, resulting in a recovery of over 90%. For Jaypee Healthcare, JC Flowers ARC offered 82% recovery on the debt of ₹68 crore.
Similarly, CFM ARC has offered 80% to buy ₹86 crore of SDB Developers loans. The lowest bid is offered for Gammon India, where Omkara ARC has offered to pay 34% for ₹252 crore debt.
All binding bids are at a reserve price set by the lender. These are mostly loans that have not turned bad over the last several years. SDB Developers had turned bad in 2019 and the bank has been trying to sell these bad loans for the last several
