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Arcil may make a competing bid for insolvent Meenakshi Energy

  • India Infoline News Service |
  • 09 Nov, 2022 |
  • 8:20 AM

News reports said that Asset Reconstruction Co India (Arcil), the oldest bad loan aggregator in the nation, has expressed interest in outbidding the government-backed National Asset Reconstruction Co's (NARCL) offer to buy Hyderabad-based thermal power company Meenakshi Energy.

Last month, NARCL made a purchase offer of Rs1,003 crore to settle the debt. NARCL will still have the chance to purchase the debt under the Swiss challenge method by matching Arcil's challenging offer if Arcil follows through on its interest with a genuine bid.

According to the reports quoted above, a challenging bid will lead to a better recovery for banks.

In order to bid on distressed assets, asset reconstruction companies (ARCs) frequently work with investors or businesses who share their interests.

The offer from NARCL results in a 28% recovery for lenders.

In Andhra Pradesh, Meenakshi Energy operates a 1,000 MW thermal power plant close to Krishnapatnam Port. Since November 2019, the business has been going through the insolvency procedure.

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