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 offered Rs 270 crore for Pink City Expressway Pvt Ltd’s debt of Rs 1,894 crore. This equates to a recovery of 14% for lenders. IDBI Bank plans to hold a Swiss challenge auction on March 1 and has invited a counteroffer with a markup of Rs 13.5 crore over the base price.
ET had reported on January 21 that NARCL is in talks with lenders to offer Rs 270 crore for the road project.
Recently, NARCL emerged as the winning bidder for acquiring the debt of Simplex Infrastructure and SEW LSY Highways.
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