The government-backed National Asset Reconstruction Company (NARCL) is declared the winning bidder for a majority debt of Wind World (India) following an uncontested Swiss challenge auction held by lenders on Monday, said people with knowledge of the matter.
NARCL gave a binding offer of Rs 670 crore to acquire Rs 3763 crore debt from lenders, according to a sale notice that did not name the ARC.
The offer from NARCL—which is a 15:85 structure—equated to an 18% recovery from lenders. Under the structure, 15% of the consideration is cash, and the balance is in the form of security receipts (SR) payable on loan recovery.
Omkara ARC, which had earlier offered Rs 550 crore upfront cash, did not bid, the people cited above said. However, the two offers are not strictly comparable since NARCL’s offer is only for 79% debt and in combination of cash and SR, while Omkara’s offer was in cash and for the entire debt.
JC Flowers ARC, too, was evaluating the company, but it did not submit a bid, the people said.
IDBI Bank, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Central Bank of India and Axis Bank are among the lenders that would sell their loans to NARCL.
Lenders admitted Wind World (India) for corporate insolvency in 2018, but a series of litigation and limited progress in debt resolution during the lockdown due to Covid-19 delayed the resolution process.
A consortium led by Suraksha ARC, Suraksha Realty and Lakshdeep Investments, which had emerged as the winning bidder, withdrew their offer, a move that was challenged by the lenders even as the National Company Law Tribunal (NCLT) approved the withdrawal of the offer.
Shailen Shah, the company’s resolution professional, has admitted Rs 6,147 crore claims, of which Rs 4,530 crore are from secured lenders.
State Bank of India filed the highest claim of Rs 1,209 crore, followed by IDBI Bank of Rs 1,119 crore.
According to media reports, a dispute between joint venture partners Germany’s Enercon GmbH and the Yogesh and Ajay Mehra brothers of Wind World (India) resulted in a financial crisis in the company.
While the Mehra brothers alleged that Enercon was attempting to take over the company, Enercon claimed that the Mehras had siphoned off money from the company.
