Debt

Debt financing

Aditya Birla ARC, Arcil among companies eyeing SBI's KSK Mahanadi loan

Economic Times  

Varde Partners-backed Aditya Birla Asset Reconstruction Company, Kotak Mahindra Bank-backed Phoenix ARC and Avenue Capital-backed Arcil are among a dozen applicants interested in acquiring a Rs 3,815 crore KSK Mahanadi Power loan from State Bank of India. SBI has set a Rs 1,544 crore reserve price on the outstanding loan. The other applicants that submitted expressions of interest include Edelweiss ARC, ASREC (India) Prudent ARC and Omkara ARC. KSK Mahanadi Power has been undergoing insolvency proceedings for over two and a half years. Aditya Birla ARC has a 16% share of KSK Mahanadi's debt, after acquiring loans from Axis Bank, Bank of Baroda and Punjab National Bank in the last two years. SBI has an 18% share in the total Rs 29,501 crore claims from financial creditors.SBI has made a claim of Rs 5,343 crore, which includes interest and penalty levied post default. The reserve price equates to a 29% recovery of the claim amount. The sale amount of Rs 3,815 crore is the outstanding loan at the time of default around 2016.