Reliance Power delivers a better offer to lenders of Vidarbha Industries

20 Jun 2023 , 10:30 AM

Reliance Power has reportedly offered a revised and improved debt-settlement offer of Rs 1,260 crore to the lenders of its Vidarbha Industries Power subsidiary. After rival bidder CFM Asset Reconstruction Co improved its offering, Reliance Power made a more enticing one.

The lenders received an early offer from CFM ARC of Rs 1,120 crore, followed by offers from NARCL of Rs 1,150 crore and Reliance Power of Rs 1,200 crore.

The upfront payment offers from Reliance Power and CFM were superior to NARCL’s mix of cash and a security receipt. At the beginning of the month, CFM ARC raised its bid to Rs 1,220 crore, while Reliance Power made a revised offer of Rs 1,260 crore. Varde Partners, which invested Rs 930 crore and took a 15% ownership position in the company in September of last year, supports the promoter’s offer. Reliance Power is dedicated to maximizing the value for its lenders, according to news reports.

Our plan and the Swiss challenge ensure that value and openness are maximized. After the lenders auction the company’s loans, the conflict over controlling Vidarbha Industries might come to an end. According to news reports, Reliance Power and CFM ARC have suggested to lenders that their offer be taken into consideration as an anchor offer at the Swiss challenge auction.

In a Swiss challenge auction, the anchor bidder benefits strategically since it has the first opportunity to match any counteroffer made by lenders. The offers from the promoter and the two ARCs will be decided on by a group of lenders, comprising State Bank of India, Axis Bank, Bank of Baroda, Punjab National Bank, Canara Bank, and Bank of Maharashtra, next week. The company’s debt of Rs 3,646 crore gets a ‘D,’ or default category, rating from Icra Ratings. 

For feedback and suggestions, write to us at [e-mail] Power has reportedly offered a revised and improved debt-settlement offer of Rs 1,260 crore to the lenders of its Vidarbha Industries Power subsidiary. After rival bidder CFM Asset Reconstruction Co improved its offering, Reliance Power made a more enticing one.

The lenders received an early offer from CFM ARC of Rs 1,120 crore, followed by offers from NARCL of Rs 1,150 crore and Reliance Power of Rs 1,200 crore.

The upfront payment offers from Reliance Power and CFM were superior to NARCL’s mix of cash and a security receipt. At the beginning of the month, CFM ARC raised its bid to Rs 1,220 crore, while Reliance Power made a revised offer of Rs 1,260 crore. Varde Partners, which invested Rs 930 crore and took a 15% ownership position in the company in September of last year, supports the promoter’s offer. Reliance Power is dedicated to maximizing the value for its lenders, according to news reports.

Our plan and the Swiss challenge ensure that value and openness are maximized. After the lenders auction the company’s loans, the conflict over controlling Vidarbha Industries might come to an end. According to news reports, Reliance Power and CFM ARC have suggested to lenders that their offer be taken into consideration as an anchor offer at the Swiss challenge auction.

In a Swiss challenge auction, the anchor bidder benefits strategically since it has the first opportunity to match any counteroffer made by lenders. The offers from the promoter and the two ARCs will be decided on by a group of lenders, comprising State Bank of India, Axis Bank, Bank of Baroda, Punjab National Bank, Canara Bank, and Bank of Maharashtra, next week. The company’s debt of Rs 3,646 crore gets a ‘D,’ or default category, rating from Icra Ratings. 

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