M&A

M&A

NARCL to take over debt of Sri Govindaraja Mills for Rs.270-Cr

Economic Times  

Government-backed bad loan aggregator National Asset Reconstruction Co (NARCL) is set to take over Chennai-based distressed textile company Sri Govindaraja Mills. NARCL’s INR 270 crore offer to lenders did not receive counter bids.Sri Govindaraja has been a non-performing asset for five years and owes creditors more than INR 750 crore. The offer from NARCL equates to a 36% recovery for lenders. NARCL will pay banks through a mix of 15% cash upfront and 85% security receipts which can be redeemed later.Canara Bank is the lead lender in the account with total exposure of INR 380 crore including term loans and bank guarantees.