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L&T Finance has received around 10 Expressions of Interest (EoIs) for 10 distressed developer loan-accounts with a total outstanding of ₹3,022 crore.
Interested parties submitting EOI are sponsored by Kotak Mahindra Phoenix ArcAsset Care and Reconstruction Enterprise (ACRE), Asset Reconstruction Company (India) (Arcil), Omkara Estate Reconstruction And edelweiss Asset Reconstruction Company
The last date for submission of firm bids is June 18.
Loan portfolio includes 10 real estate developers supertech, Nirmal Lifestyleand owned by Anil Ambani Reliance Infrastructure Special Purpose Vehicle SU Toll Road. The largest loan credits available for sale are attributed to Nirmal Lifestyle Developers at ₹790 crore, Nirmal Lifestyle Mall at ₹251 crore and Supertech at ₹515 crore.
L&T Finance is adopting a 15:85 structure, inviting EOIs from asset reconstruction companies, where in the security receipts, L&T Finance will have a maximum share of 85%. Interested bidders were required to show their interest by June 5.
Spokespeople for L&T Finance, ARCIL and Omkara did not respond to requests for comment.
edelweiss Spokespersons of ARC and ACRE confirmed that they have submitted the EOI.
“Around 10 ARCs have submitted EoIs, but not all will make firm bids for the property,” said the CEO of one of the ARCs that bid. “L&T Finance has been trying to sell the Supertech loan for some time, but bidders have not shown interest in this loan.”
The move by L&T Finance is part of its ongoing efforts to reduce its wholesale book, which includes both infrastructure finance and real estate finance. The company aims to focus more on retail lending and gradually exit wholesale lending. As of the end of FY23, retail loans accounted for 75% of L&T Finance’s total loan book, according to the firm’s statement on April 28.
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