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Karaikal Port debt restructuring: Edelweiss ARC opts for Swiss challenge

Business Line  

Edelweiss Asset Reconstruction Co has opted for the Swiss Challenge method to sell the entire debt of INR 2,059.24 crore of Karaikal Port, along with the 11% equity it holds. in the port operating company. The move follows an offer by Adani Ports and Special Economic Zone for the port. Edelweiss ARC has set a reserve price of INR 1,500 crore for assigning the debt, indicating that the offer by APSEZ is either equivalent to or just below the reserve price. The debt is being sold on a 100% cash basis. Karaikal Port, which runs the private port in Puducherry, was promoted by Marg Ltd. The port started operations in June 2009 and had availed rupee term loans from a clutch of state-run lenders.