Arcil offers Rs 700 crore for Xrbia bad loan portfolio

28 Mar 2023 , 08:31 AM

According to news reports, Asset Reconstruction Company of India (Arcil) has emerged as the biggest bidder for the L&T Financial real estate portfolio of the Pune-based Xrbia group.

For a portfolio worth Rs 880 crore, Arcil has offered Rs 700 crore in cash and security receipts, according to the reports. The ARC’s proposal would result in an 80% recovery for the financing firm.

One of the aforementioned reports stated, ‘L&T Finance organized an auction last Thursday and Arcil was the single bidder.’ Arcil’s offer was 15% in cash and 85% in the form of security receipts (SR), which would be paid upon loan repayment.

Also, the business was in discussions to sell the same portfolio with Aditya Birla ARC and Phoenix ARC.

L&T Finance invited ARC bids in February of last year for the sale of five Xrbia Group enterprises. These companies include Xrbia Developers, which has a debt of Rs435 crore, Xrbia Chakan Developers, which has a debt of Rs164 crore, Xrbia Warai Developers, which has a liability of Rs156 crore, Xrbia Ambience Property LLP, which has a debt of Rs107 crore, and Eiffel Lifespaces, which has a debt of Rs18 crore.

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