M&A

M&A

Canara Bank-led consortium sells Rs.520-Cr KTPL debt to Prudent ARC

Economic Times  

A lenders' consortium, led by Canara Bank, has sold INR 520 crore of Karanja Terminal and Logistics (KTPL) debt to Prudent ARC. The transaction was executed through a Swiss challenge auction, featuring an all-cash resolution, which resulted in the recovery of over 86% of the outstanding dues.Incorporated in 2010, Karanja Terminal and Logistics (KTPL) operates a port facility in Raigad, Maharashtra, and was established as a Special Purpose Vehicle (SPV) by Mercantile Ports and Logistics Ltd to develop an all-weather port and logistics facility at Karanja Creek. The company's debt was classified as a non-performing asset following repayment delays.The lenders initiated an auction for the approximately INR 600 crore outstanding loan, setting a base price of INR 428 crore to determine market value before considering the promoter's one-time settlement (OTS) offer of INR 475 crore. Consequently, Prudent ARC's binding all-cash offer of INR 520 crore emerged as the winning bid, surpassing both the base price and the promoter's offer by approximately INR 100 crore. Prudent's bid is supported by institutional investors.