State Bank of India has sold INR 341 crore of principal loan outstanding from bankrupt Atibir Industries to CFM Asset Reconstruction Company for INR 250 crore through a Swiss challenge auction. The all-cash sale indicates a recovery of 73 paise on a rupee of the principal amount outstanding for SBI. CFM ARC made the anchor bid and there were no counterbids.
Atibir Industries, incorporated in 2000 and promoted by Santosh Kumar Sarawgi of Jharkhand, is in the business of manufacturing sponge and pig iron. The company also has pellets and sinters manufacturing facilities as backward integration in Jharkhand. It has installed capacities of sinter 680,000 tonnes, pig iron 600,000 tonnes, pellets 300,000 tonnes and sponge iron 120,000 tonnes per annum.
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