ACRE offers Rs 230 crore to SBI for buying Visa Steel's Rs 697.2 crore bad debt

27 Feb 2023 , 12:24 PM

Asset Care and Reconstruction Company (ACRE) has given binding offer of Rs 230 crore to the State Bank of India to acquire Visa Steel’s Rs 697.2 crore loans given by the bank.

Last month, SBI had invited expressions of interest on January 12 and firm bids by February 10 through issuing notice on its website.

As per the reports of the Economic Times, the offer from the asset reconstruction company ACRE equates to the recovery of 33 paise on outstanding loans for the country’s largest state-run lender by assets.

SBI will hold Swiss challenge soon with ACRE’s offer of Rs 230 crore as an anchor bid. No other ARC submitted a firm bid to Visa steel loans.

The sale of Visa Steel comes after multiple failed attempts by lenders to admit the company for corporate insolvency.

Lenders have classified loans of Visa as non-performing accounts since 2012. It has a principal outstanding loan of Rs 2,331 crore, according to the company’s annual report. Punjab National Bank, Union Bank, Hudco and Exim Bank are among other lenders of Visa Steel.