Kotak Mahindra bank backed Phoenix ARC set to acquire Bank of India’s VVF (India) loan : Rashtra News
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The bank will declare Phoenix ARC as the winning bidder following an uncontested Swiss challenge auction held Saturday evening to sell Rs 210 crore of loans given to VVF (India). Phoenix ARC offered Rs 105 crore as an anchor bidder, people said. The 50% recovery by the government-owned bank from selling the loan will reflect in its FY23 first-quarter earnings.
Phoenix ARC and a Bank of India official did not respond to ET’s queries.
Central Bank of India and State Bank are among VVF’s lenders, and they too are proposing to sell their debt soon. VVF’s other lenders include Punjab National and Bank of Baroda.
Phoenix acquired VVF India’s debt from IDBI Bank and Axis Bank in the past. Upon acquiring Bank of India’s loans, Phoenix ARC will have a 30% share in the company’s total debt. VVF (India) has a total debt of Rs 1,400 crore, according to a credit rating report by Crisil Ltd.
The company was admitted for insolvency proceedings last September after a petition filed by the Bank of India. However, within a month, the appellate authority stayed the formation of a committee of creditors after an appeal by the company that it was in talks with lenders for an out-of-court settlement.
Unlisted VVF (India) is engaged in making personal health care products such as Doy Care and Jo.
It primarily makes fatty oils, fatty alcohols and glycerine, which contribute to around 60% of the total revenue, a rating report by Crisil said. It is among the country’s largest manufacturers of oleochemicals with a unit at Taloja, Maharashtra. It also undertakes contract manufacturing of personal care products at its plants in Baddi, Himachal Pradesh, Kolkata, and Daman.
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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a economictimes.indiatimes.com feed.)
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