M&A

M&A

Encore ARC acquires IndoStar Capital's Rs.292-Cr stressed loan book

Economic Times  

Brookfield and Everstone-backed IndoStar Capital Finance has sold INR 292 crore worth of stressed asset portfolio to Encore Asset Reconstruction Company (ARC) in a deal which involved a senior-junior arrangement between the buyer and the seller under a Swiss auction.The senior class comprises 38-40% of the principal amount which Encore will pay as upfront cash. The junior class which is 60-62% of principal loan, is split into cash and security receipts. Of the junior class, IndoStar would receive cash and subscribe to the security receipts.