Back to Career News

Phoenix ARC set to acquire Bank of India’s VVF

May 03, 2022

Phoenix ARC set to acquire Bank of India’s VVF
Kotak Mahindra Bank-backed Phoenix ARC is soon set to acquire a few outstanding loans of VVF (India) from Bank of India at a discount of 50%, two individuals aware of the development told ET.

The bank will declare Phoenix ARC as the winning bidder following an uncontested Swiss test auction held Saturday evening to sell ₹210 crore of loans given to VVF (India). Phoenix ARC offered ₹105 crore as an anchor bidder, individuals said. The 50% recovery by the government-owned bank from selling the loan will reflect in its FY23 first-quarter earnings.
 
Phoenix ARC and a Bank of India official didn’t answer ET’s questions.
 
Central Bank of India and State Bank are among VVF’s lenders, and they also are proposing to sell their debt soon. VVF’s other lenders include Punjab National and Bank of Baroda.
 
Phoenix gained VVF India’s debt from IDBI Bank and Axis Bank in the past. After getting Bank of India’s credits, Phoenix ARC will have a 30% share in the organization’s total debt. VVF (India) has a complete obligation of ₹1,400 crore, as indicated by a credit rating report by Crisil Ltd.
 
The organization was admitted for insolvency proceedings last September after a petition filed by the Bank of India. In any case, in the span of a month, the appellate authority stayed the formation of a committee of creditors after an appeal by the organization that it was in talks with lenders for an out-of-court settlement.
Important Links:

Recommended for you ...

Reserve Bank to promote rupee as preferred currency for global trade
Reserve Bank to promote rupee as preferred currency for global trade

August 09, 2022

IDFC First Bank partners LetsVenture to support start-ups
IDFC First Bank partners LetsVenture to support start-ups

August 09, 2022

SFB allowed to offer more forex products
SFB allowed to offer more forex products

August 09, 2022

Chat on WhatsApp