Jaiprakash Associates
SC Lowy, ACRE Bid for Yes Bank’s INR 4.13B Exposure to Jaiprakash Associates NPLs
Thu 05/30/2019 09:26 AM
Relevant Document:
Reorg analysis
SC Lowy and Assets Care & Reconstruction Enterprise Ltd. (ACRE) have submitted bids for INR 4.13 billion ($59.2 million) of Yes Bank Ltd.’s non performing loan (NPL) exposure to Jaiprakash Associates Ltd., said two sources with knowledge of the matter. Other funds including Silver Point Capital are also looking to bid, the sources said.
Yes Bank held an auction for the loan package on May 29 with at least two bids coming in a range between the low to mid 30s cents on the dollar, the sources said. One bid was higher than the rest which may force Yes Bank to consider a Swiss challenge auction, the sources explained.
The reserve price for the bid was INR 1.65 billion or 40 cents to the dollar, and the auction excludes bank guarantees of INR 547.6 million, which are proposed to be assigned on similar terms and conditions after invocation or crystallization, as Reorg reported.
The sale of assets to ARCs, banks, NBFCs and financial institutions will be on a full cash basis and on “as is, where is and what is” basis and without recourse to the bank.
Reorg coverage of Jaiprakash is HERE, analysis HERE, while the group's capital structure is below:
Reorg analysis
SC Lowy and Assets Care & Reconstruction Enterprise Ltd. (ACRE) have submitted bids for INR 4.13 billion ($59.2 million) of Yes Bank Ltd.’s non performing loan (NPL) exposure to Jaiprakash Associates Ltd., said two sources with knowledge of the matter. Other funds including Silver Point Capital are also looking to bid, the sources said.
Yes Bank held an auction for the loan package on May 29 with at least two bids coming in a range between the low to mid 30s cents on the dollar, the sources said. One bid was higher than the rest which may force Yes Bank to consider a Swiss challenge auction, the sources explained.
The reserve price for the bid was INR 1.65 billion or 40 cents to the dollar, and the auction excludes bank guarantees of INR 547.6 million, which are proposed to be assigned on similar terms and conditions after invocation or crystallization, as Reorg reported.
The sale of assets to ARCs, banks, NBFCs and financial institutions will be on a full cash basis and on “as is, where is and what is” basis and without recourse to the bank.
Reorg coverage of Jaiprakash is HERE, analysis HERE, while the group's capital structure is below:
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