SBI efforts to auction Essar Ltd outstanding loan, receives only one bid

Must Read

Howdy, Modi! : World media reactions on Modi-Trump’ grand Houston Event address

New Delhi, Sep 23: United States President Donald Trump and Indian Prime Minister Narendra Modi on late Sunday shared...

Howdy Modi : Modi-Trump mark history in US-India relationship with great show at Houston

Houston, Sep 22:  Modi, delivering his speech at the historic event, talks about the development underwent over five years...

ECI announces dates of Maharashtra & Haryana elections; Single Phase Election on October 21; Result on 24th

Election Commission of India has announced the dates of much-awaited state elections. According to the Chief Election Commissioner, Sunil...

State Bank of India’s bid to sell the outstanding loans given to Essar Ltd. has received very low interest by the bidders. Bank of America Merrill Lynch emerged as the sole bidder but the American bank only bid for a part of the loan, people close to the matter said.

The Multinational Bank has bid only for a part of the loan that was up for sale and offered Rs 1,300 Crore to Rs 1,500 crore.

SBI granted loans to Essar Ltd under different heads which included working capital, term loan and corporate loan amounting to Rs 15,431 Crore overall. Now with just one bidder, it is unclear whether SBI will go further for the auction. AS per the documents the SBI commands the final authority in the auction process and can reject the bid.

Such a poor response for auction is seen due to the “claw-back” provision, which says buyer of the loan has to pay more if the asset gets resolved within one year of loan purchase.

Essar Steel, is currently being resolved under the Insolvency and Bankruptcy Code (IBC). A resolution plan by ArcelorMittal has been approved and now awaits for the final nod by the National Company Law Tribunal (NCLT). In the aforesaid resolution plan, SBI is set to receive RS 11,313 Crore which would leave a surplus of Rs  1,725 Crore in investor’s hand in the loan at reserve price.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Ballot paper for SL presidential election finalised

Colombo, Oct 15 (IANS) The Election Commission of Sri Lanka has finalised the symbols for all 35 candidates contesting...

Kashmiris feel the pinch as made to pay for suspended period

Srinagar, Oct 15 (IANS) As Kashmiris continue to celebrate the restoration of their post-paid mobile phones, service providers are having the last laugh with...

Portman’s character may get breast cancer in ‘Thor 4’

Los Angeles, Oct 15 (IANS) Director Taika Waititi says Natalie Portman character Jane Foster in "Thor 4" could include breast cancer storyline.Marvel fans are...

Sanaya Irani looks stunning in her latest pictures as she promotes ‘Ghost’

Actress Sanaya Irani is now a days gearing up for the release of her upcoming horror film 'Ghost'. She recently shared some of her pictures...

Centre not keen on staff representatives on bank boards: AIBEA

Chennai, Oct 15 (IANS) The All India Bank Employees' Association (AIBEA) has written to Finance Minister Nirmala Sitharaman stating that the...
- Advertisement -

More Articles Like This