M&A

M&A

Acre ARC buys out Nagarjuna Fertilizer's Rs.1,500-Cr debt at Rs.811-Cr

Economic Times  

Ares SSG-backed Acre ARC has completed the acquisition of INR 1,500 crore debt of the distressed Nagarjuna Fertilizers and Chemicals. Acre transferred INR 811 crore to lead lender IDBI Bank after Punjab National Bank, the final lender in the seven-bank consortium, approved the transaction earlier this week. Acre's offer was just above the INR 810 crore reserve price set by banks. It ensures a 54% recovery. IDBI Bank, with INR 568 crore of exposure, is the lead lender and is managing the sale on behalf of a seven-bank consortium. Other lenders include the State Bank of India (INR 576.91 crore) and ICICI Bank (INR 196.70 crore). Bank of India, UCO Bank, Indian Overseas Bank and PNB were the other lenders in the consortium. Nagarjuna's 1.59 million tonne plant in Kakinada had faced issues due to a gas pipeline burst in 2014-15.