Yes Bank Offloads ₹203 Crore Stressed Loan to Prudent ARC

20 Mar 2024 , 12:39 PM

According to an exchange filing, Mumbai-based private lender Yes Bank Ltd. has completed the transfer of its exposure to Katerra India Pvt. Ltd. to Prudent ARC Ltd.

Prudent is a company that reconstructs assets. Yes Bank has been compensated in cash for the same with ₹203.4 Crore.

In order to sell identified stressed loan exposures through auction using the Swiss Challenge Method, Yes Bank had invited Expressions of Interest. The Reserve Bank of India’s Master Direction on the transfer of loan exposures, 2021, was followed in this transaction.

Katerra owes Yes Bank ₹521 Crore and was forced into corporate insolvency last year. This indicates that Yes Bank’s exposure to Katerra has nearly recovered to 40%.

The Indian branch of the US-based Katerra was called Katerra India. In 2021, companies based in the US and the Cayman Islands filed for Chapter 11 bankruptcy protection. Even though the US units had filed for bankruptcy, Katerra India had stated at the time that they would keep concentrating on their construction projects and solutions.

According to the article, its portfolio comprised hotels, business parks, malls, and hospitals spread throughout many Indian states.

More than a year prior, JC Flowers ARC purchased a troubled loan book from Yes Bank for ₹48,000 Crore.

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