Bidders seek more details on Vidarbha Industries’ debt resolution process

BL Mumbai Bureau Updated - July 10, 2023 at 09:02 PM.
The lead banker, Axis Bank, has issued an invitation for expression of interest for the sale of VIPL’s outstanding debt. | Photo Credit: Dilok Klaisataporn

Potential bidders for Vidarbha Industries Power Ltd (VIPL) have asked lenders to give more details related to the Swiss Challenge process for the sale of the company’s outstanding debt.

The lead banker, Axis Bank, has issued an invitation for expression of interest for the sale of VIPL’s outstanding debt.

“The detailed invitation document for submission of EOI for the sale/assignment of VIPL’s outstanding debt does not even disclose the basic mandatory information to the potential bidders for enabling them to make a counter bid for the VIPL debt,” said an executive of one of the companies which is interested in placing a bid.

“The EOI document does not mention the name of the anchor bidder. The document, without disclosing the name of the bidder, simply says that a binding bid has been received from an asset reconstruction company, which is the anchor bidder,” the executive added.

According to sources, the anchor bidder, CFM ARC, has offered ₹1220 crore. VIPL’s promoter group Reliance Power is understood to have offered ₹1,260 crore as a one-time settlement .

Published on July 10, 2023 15:31

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